2009 SEMI-ANNUAL REPORT
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
The Semi-Annual Report is written in both English and Chinese.
In case of any discrepancy between the two versions, Chinese version prevails.
Important Note
The Board of Directors, the Supervisory Committee as well as the
directors, supervisors and senior management staff of Shenzhen Chiwan
Wharf Holdings Limited (hereinafter referred to as “the Company”)
hereby confirm that there exists no omission, misstatement, or misleading
information in this report, and accept, individually and collectively, the
responsibility for the factuality, accuracy and completeness of the contents
of this report.
This Semi-Annual Report has been reviewed and approved at the Fourth
Session of the Sixth Board of Directors of the Company. Director Han
Guimao did not attend the meeting due to business reason and appointed
Director Fan Zhaoping, as his proxy to attend and speak at the meeting on
his behalf. Director Han Guimao has given his consents to the full contents
of this semi-annual report.
Ms. Wang Fen, the Chairman of the Board, Mr. Zhang Jianguo, the Chief
Financial Officer of the Company and Ms. Zhang Yuanling, the Financial
Manager of the Company, hereby confirm that the financial report
contained herein is true and complete.
The financial report contained herein has not been audited.Table of Contents
PART Ⅰ COMPANY PROFILE ..........................................................................................1
PART Ⅱ CHANGES IN SHARE CAPITAL AND SHAREHOLDERS...........................3
PART Ⅲ DIRECTORS, SUPERVISORS & SENIOR MANAGEMENT STAFF............5
PART Ⅳ REPORT OF THE BOARD OF DIRECTORS....................................................6
PART Ⅴ SIGNIFICANT EVENTS .....................................................................................10
PART Ⅵ FINANCIAL REPORT (ATTACHED BEHIND, UN-AUDITED)..................18
PART Ⅶ DOCUMENTS AVAILABLE FOR REFERENCE...........................................18Semi-Annual Report 2009－Chiwan Wharf
1
PART Ⅰ COMPANY PROFILE
I. Corporate Information
A. Company's Name in Chinese 深圳赤湾港航股份有限公司
Company's Name in English Shenzhen Chiwan Wharf Holdings Limited (CWH)
B. Stock Exchange Shenzhen Stock Exchange
Short Name of the Stock Chiwan Wharf A/Chiwan Wharf B
Stock Code 000022/200022
C. Place of Registration Chiwan, Shenzhen, PRC
Offices 12-13/F., Chiwan Petroleum Building,
Chiwan, Shenzhen, PRC
Postal Code 518067
E-mail cwh@cndi.com
Website http://www.szcwh.com
D. Legal Representative Ms. Wang Fen, Chairman
E. Secretary to the Board Ms. Pei Jiangyuan
Authorized Representative Mr. Li Ying
Address 13/F., Chiwan Petroleum Building, Shenzhen, PRC
Tel +86 755 26694222
Fax +86 755 26684117
E-mail cwh@cndi.com
F. Newspapers for Information "Securities Times" and "Ta Kung Pao”
Disclosure
Website for Semi-Annual Report http://www.cninfo.com.cn
Semi-Annual Report Preparation Secretariat of the Board of Directors
II. Major Financial Highlights
Unit: RMB
As at 30 Jun. 2009 As at 31 Dec. 2008 +/- (%)
Total assets 5,184,025,572 5,153,728,048 0.59%
Total equity attributable to equity holders of the Company 2,633,754,921 2,755,264,347 -4.41%
Share capital 644,763,730 644,763,730 0.00%
Net assets per share attributable to equity holders of the Company 4.085 4.273 -4.40%
Jan.-Jun. 2009 Jan.-Jun. 2008 +/- (%)
Revenue 714,358,140 975,980,451 -26.81%
Operating profit 320,028,779 529,567,353 -39.57%
Total profit 327,514,639 528,450,776 -38.02%
Net profit attributable to equity holders of the Company 200,144,439 330,964,205 -39.53%
Net profit attributable to equity holders of the Company after
extraordinary gains and losses 194,446,830 331,758,107 -41.39%
Earnings per share-Basic 0.310 0.513 -39.57%
Earnings per share -Diluted 0.310 0.513 -39.57%
Return on equity 7.60% 13.39% -5.79%
Net cash flows arising from operating activities 294,064,935 546,900,230 -46.23%
Net cash flows per share arising from operating activities 0.456 0.848 -46.23%Semi-Annual Report 2009－Chiwan Wharf
2
● Extraordinary gains and losses items
Items Amount
Net gains/(losses) on disposal of non-current assets 6,604,694
Non-operating income (expense) - net 881,166
Tax effects on extraordinary gains and losses (1,390,265)
Minority interests on extraordinary gains and losses (397,986)
Total 5,697,609
● Net profit attributable to equity holders of the Company for the reporting period and total
equity attributable to equity holders of the Company as at the end of reporting period in the
Financial Report prepared under Chinese Accounting Standards (CAS) and International
Financial Reporting Standards (IFRS)
Unit: RMB
CAS IFRS
Net profit attributable to equity
holders of the Company 200,144,439 200,144,439
Total equity attributable to
equity holders of the Company 2,633,754,921 2,633,754,921
Reason for difference After performing new accounting standard for business
enterprise, there existed no difference in either net profit
attributable to equity holders of the Company for the reporting
period or total equity attributable to equity holders of the
Company as at the end of reporting period as set out in the
Financial Report prepared under CAS and IFRS.
III. Returns on equity and earnings per share calculated in accordance with the requirements
of the Rules for the Compilation of Information Disclosure by the Companies Publicly
Issuing Securities (No. 9) promulgated by CSRC
Profit for the reporting period Return on equity Earnings per share
Fully diluted Weighted average Basic Diluted
Net profit attributable to equity
holders of the Company 7.60% 7.14% 0.310 0.310
Net profit attributable to equity
holders of the Company after
extraordinary gains and losses
7.38% 6.94% 0.302 0.302Semi-Annual Report 2009－Chiwan Wharf
3
PART II CHANGES IN SHARE CAPITAL AND SHAREHOLDERS
Ⅰ. Changes in Share Capital
Unit: share
Before the change Increase(+)/decrease(-) After the
change
Number Percentage
Issue of
additional
shares
Bonus
issue
Reserves
to
stocks
Other Sub-total Number Percentage
1. Shares subject to trading moratorium
a. State-owned shares
b. State-owned legal person shares
c. Other domestic shares
Including:
Shares held by domestic on-state-owned
legal persons
Shares held by domestic individuals
d. Shares held by overseas shareholders
Including:
Shares held by overseas legal persons
Shares held by overseas individuals
e. Shares held by senior management staff
2. Shares not subject to trading moratorium
a. Ordinary shares denominated in RMB
b. Domestically listed foreign shares
c. Overseas listed foreign shares
d. Others
324,608,912
324,316,070
324,316,070
292,842
320,154,818
140,473,735
179,681,083
50.345%
50.300%
50.300%
0.045%
49.655%
21.787%
27.868%
-324,316,070
-324,316,070
-324,316,070
+324,316,070
+324,316,070
-324,316,070
-324,316,070
-324,316,070
+324,316,070
+324,316,070
292,842
0
0
292,842
644,470,888
464,789,805
179,681,083
0.045%
0.000%
0.000%
0.045%
99.955%
72.087%
27.868%
3. Total shares 644,763,730 100% 644,763,730 100%
Amounting to 324,316,070 China Wharf A shares held by China Nanshan Development (Group)
Inc. (hereinafter referred to as “CND”), the controlling shareholder of the Company, were released
of trading moratorium and listed for circulation on 19 Jun. 2009. Relevant announcement was
disclosed on Securities Times and Ta Kung Pao dated 18 Jun. 2009 (Announcement serial No.
2009-015).Semi-Annual Report 2009－Chiwan Wharf
4
Ⅱ. Number of shareholders and particulars about shares held by them (as at 30 Jun. 2009)
Unit: share
Total number of shareholders 39,437 shareholders, among which 29,951 being shareholders
of A shares and 9,486 being shareholders of B shares
Shareholdings of top ten shareholders
Name of shareholder (Full name)
Nature of
shareholder
(state-owned
shareholder or
foreign shareholder)
Percentage
of
shareholding
(%)
Total shares
held (share)
Shares
subject to
trading
moratorium
(share)
Shares
pledged
or frozen
(share)
CHINA NANSHAN DEVELOPMENT
(GROUP) INC. 57.51 370,802,900 0 0
CHINA MERCHANTS SECURITIES
(HK) CO., LTD Holder of B shares 7.92 51,069,782 0 Unknown
CMBLSA RE FTIF TEMPLETON
ASIAN GRW FD GTI 5496 Holder of B shares 3.85 24,844,415 0 Unknown
NATIONAL SOCIAL SECURITY
FUND 102 PORTFOLIO 1.32 8,503,724 0 Unknown
PLATINUM ASIA FUND Holder of B shares 1.10 7,111,679 0 Unknown
GOVERNMENT OF SINGAPORE INV.
CORP.- A/C "C" Holder of B shares 0.79 5,093,425 0 Unknown
BANK OF CHINA － AIA-HUATAI
SHENGSHI CHINA STOCK-TYPE
OPEN-ENDED SECURITIES
INVESTMENT FUND
0.73 4,723,492 0 Unknown
UBS WARBURG CUSTODY PTE LTD. Holder of B shares 0.64 4,096,414 0 Unknown
BANK OF NEW YORK-MATTHEWS
PACIFIC TIGER FUND Holder of B shares 0.62 3,999,996 0 Unknown
MIRAE ASSET ASIA PACIFIC INFRA
SECTOR EQTY INVSTMT TRS 1 Holder of B shares 0.61 3,927,021 0 Unknown
Shareholdings of top ten shareholders holding shares not subject to trading moratorium
Name of shareholder (Full name)
Number of shares
not subject to
trading moratorium
Type of shares (A, B,
H or others)
CHINA NANSHAN DEVELOPMENT (GROUP) INC. 370,802,900 A shares
CHINA MERCHANTS SECURITIES (HK) CO., LTD 51,069,782 B shares
CMBLSA RE FTIF TEMPLETON ASIAN GRW FD GTI 5496 24,844,415 B shares
NATIONAL SOCIAL SECURITY FUND 102 PORTFOLIO 8,503,724 A shares
PLATINUM ASIA FUND 7,111,679 B shares
GOVERNMENT OF SINGAPORE INV. CORP.- A/C "C" 5,093,425 B shares
BANK OF CHINA－AIA-HUATAI SHENGSHI CHINA STOCK-TYPE
OPEN-ENDED SECURITIES INVESTMENT FUND 4,723,492 A shares
UBS WARBURG CUSTODY PTE LTD. 4,096,414 B shares
BANK OF NEW YORK-MATTHEWS PACIFIC TIGER FUND 3,999,996 B shares
MIRAE ASSET ASIA PACIFIC INFRA SECTOR EQTY INVSTMT
TRS 1 3,927,021 B shares
Explanation on associated relationship
among the top ten shareholders:
CND does not have any relations with the shareholders holding shares not
subject to trading moratorium. The Company is not aware of whether there
is any inter-relation among other shareholders holding shares not subject to
trading moratorium.
III. Within the reporting period, the controlling shareholder of the Company remained
unchanged, so did the shares held by CND.Semi-Annual Report 2009－Chiwan Wharf
5
PART Ⅲ DIRECTORS, SUPERVISORS & SENIOR MANAGEMENT STAFF
Ⅰ.The shareholding of the Company’s directors, supervisors and senior management staff
remained unchanged, which was specified as follows:
Name Title
Number of shares
held at year-begin
(share)
Number of
shares
increased in
reporting
period (share)
Number of
shares
decreased in
reporting
period (share)
Number of
shares held at
period-end
(share)
Reason for
changes
Wang Fen
Chairwoman
of the Board
82,632 0 0 82,632 N/A
Fan Zhaoping Director 53,877 0 0 53,877 N/A
Yuan Yuhui Director 14,040 0 0 14,040 N/A
Han Guimao Director 13,988 0 0 13,988 N/A
Zheng Shaoping
Director,
General
Manager
90,908 0 0 90,908 N/A
Zhang Ning
Director,
Deputy
General
Manager
69,175 0 0 69,175 N/A
Fang Jie Supervisor 10,776 0 0 10,776 N/A
Ni Keqin Supervisor 12,568 0 0 12,568 N/A
Zhang Jianguo CFO 28,731 0 0 28,731 N/A
Pei Jiangyuan
Secretary to
the Board 13,763 0 0 13,763 N/A
Ⅱ. During the reporting period, the Company did not appoint or dismiss any director,
supervisor and senior management staff.Semi-Annual Report 2009－Chiwan Wharf
6
PART Ⅳ REPORT OF THE BOARD OF DIRECTORS
Ⅰ. Business Performance
1. Core business scope and business performance
The Company is principally engaged in handling, warehousing and transportation of containers
and bulk cargoes, as well as the provision of related services.
In the reporting period, the import and export of China was encountered a sharp decline, which in
turn led to decreased handling volume of containers in the coastal ports in the country.
Throughput of containers in Shenzhen Port which centered on foreign trade even registered a
year-on-year decrease by 20.6%. Due to some factors concerning the wharf resources, structure
of lines calling, etc., the company’s handling volume of containers showed a greater decrease of
29.3% than the average decrease rate of Shenzhen Port. The Company maintained general
stability in its bulk cargo business, with the relevant handling volume almost equal to the
previous year. Supporting services such as tow truck and tugboat services in the port area also
suffered various degrees of decline. Specific business indexes were as follows:
Business Data Jan.-Jun. 2009 Jan.-Jun. 2008 +/- YoY
Total throughput of cargo (’000 tons) 23,833.4 31,850.0 -25.2%
Including: container (’000 TEU) 2,152.4 3,044.7 -29.3%
Chiwan Port 1,531.1 2165.2 -29.3%
Mawan Port 621.3 879.6 -29.4%
Bulk cargoes (’000 tons) 3,886.3. 3,874.2 0.3%
Hours charged for tow truck service
(’000 hours) 569.1 832.7 -31.7%
Hours charged for tugboat service (hour) 14,516 16,773 -13.5%
2. Year-on-year changes in revenue, operating profit and net profit attributable to equity holders of
the Company
Unit: RMB
Item Jan.-Jun. 2009 Jan.-Jun. 2008 +/- YoY
Revenue 714,358,140 975,980,451 -26.81%
Operating profit 320,028,779 529,567,353 -39.57%
Net profit attributable to equity
holders of the Company 200,144,439 330,964,205 -39.53%
Reason for changes: due to the 29.3% decrease of the Company’s business volume year-on-year,
the revenue, operating profit and net profit attributable to equity holders of the Company decreased
accordingly compared to the same period of last year.Semi-Annual Report 2009－Chiwan Wharf
7
3. Core business accounting for 10% or above of the revenue, for the reporting period:
Unit: RMB
Business Revenue Operating cost
Operating
profit margin
(%)
+/- of revenue
YoY (%)
+/- of operating
cost YoY (%)
+/- of operating
profit margin
YoY (%)
Cargo
handling 635,163,208 292,626,524 53.93% -29.08% -14.66% -7.78%
4. Profit breakdown, core business structure and profitability of the Company did not have
significant changes during the reporting period.
5. The Company conducted no other business, which exerted significant influence on the
Company’s profit during the reporting period.
6. Media Port Investments Limited (hereinafter referred to as “MPIL”) is jointly incorporated at
the British Virgin Islands by Chiwan Wharf Holdings (HK) Ltd. (hereinafter referred to as
“CWHK”), a wholly-owned subsidiary company of the Company, and China Merchants
Holdings (International) Company Limited as an investment controlling company. The said two
companies hold its 50% equity separately. MPIL holds 60% equity of Shenzhen Mawan Wharf
Co., Ltd., Shenzhen Mawan Port Service Co., Ltd. and Shenzhen Mawan Terminals Co., Ltd. in
total. During the reporting period, MPIL gained net profit of RMB57,652,544 through the
above-mentioned three companies.
For the reporting period, the Company earned investment income amounting to
RMB28,826,272 from MPIL, accounting for 14.40% of net profit attributable to equity holders
of the Company for the reporting period.
Ⅱ. Financial Status
1. Composition of assets and reasons for significant changes year-on-year:
Unit: RMB
Item As at 30 Jun. 2009 As at 31 Dec.2008 +/- (%)
Dividend payable 578,933,294 271,365,815 113.34%
Reasons for significant changes:
The dividend payable increased mainly because it was declared at the Shareholders’ General
Meeting in May that a cash dividend was to be distributed for ordinary shares in this July.
2. Composition of profits and reasons for significant changes year-on-year
Unit: RMB
Item Jan.-Jun. 2009 Jan.-Jun. 2008 +/- (%)
Investment income 31,207,492 51,566,710 -39.48%
Minority interest income 91,126,507 152,583,405 -40.28%Semi-Annual Report 2009－Chiwan Wharf
8
Reasons for significant changes:
Decreases of investment income are due to drop of net profit of associate companies resulted from
decreasing container throughput；
The minority interest income decreased mainly because the profit of the holding subsidiaries
decreased.
3. Composition of cash flows
Unit: RMB
Item Jan.-Jun. 2009 Jan.-Jun. 2008 +/- (%)
Net cash flows from operating
activities 294,064,935 546,900,230 -46.23%
Net cash flows from investing
activities (120,923,392) (51,859,564) 133.17%
Net cash flows from financing
activities (220,411,998) (480,271,952) -54.11%
Net (decrease)/increase in cash
and cash equivalents (47,270,455) 14,768,714 -420.07%
Reasons for significant changes:
Net cash inflows from operating activities decreased mainly due to the reduced operating profit in
the reporting period;
Net cash outflows from investing activities increased mainly because the Company received
dividends from MPIL and added capital contribution to China Merchants Maritime Logistics
(Shenzhen) Co., Ltd in 2008;
Net cash outflows from financing activities decreased mainly because the Company refunded the
loans for proposed projects in January 2008.
Ⅲ. Investments in reporting period
1. The Company did not raise any funds in the reporting period, and the latest funds raised by the
Company had been used up by the end of 1996.
2. Significant investment projects with non-raised funds
In the reporting period, the Company made a total investment of RMB134.7 million of which
RMB52.37 million was invested in fixed assets at Chiwan Port, mainly referring to the project of
“converting diesel-powered RTG engines into electric ones”; and RMB82.33 million was
invested in the Machong Project in Dongguan.
Ⅳ. Outlook for future development of the Company
1. Development trend of the industry in which the Company is engaged
Import and export of China has been declining consecutively for 8 months. Despite the fact that
the declining trend has slowed down, the negative growth of China’s import and export as well as
of the relevant container throughput will continue due to a deep recession of the developedSemi-Annual Report 2009－Chiwan Wharf
9
economies, the slow economic recovery and the sluggish import trade. However, the second half
of this year may witness an increase in container throughput over that of the first half due to the
fact that the second half is usually considered as the shipping peak.
The bulk cargo business in the three ports of West Shenzhen is going well in general, and it is
thus expected that the second half is likely to see no massive changes in the business.
2. Main problems and risks encountered by the Company
The Company still faces risks of reducing shipping lines and losing clients, considering the
shrinking container throughput due to the sluggish import and export trade.
3. Business plan for the second half, as well as countermeasures against risks
The Company will continue to carry out its annual business plan, strengthen its internal
management and cost control, and optimize the resource allocation and business structure.
Meanwhile, it will also timely adjust its business strategies according to the market changes,
actively deal with possible crises and seize opportunities for a better business performance.Semi-Annual Report 2009－Chiwan Wharf
10
PART Ⅴ SIGNIFICANT EVENTS
Ⅰ. Corporate governance
Ever since its establishment, the Company have been operating in strict compliance with the
Company Law, Securities Law and relevant laws and regulations issued by CSRC. And it has
timely formulated and amended its relevant management rules according to the Code of
Corporate Governance for Listed Companies, which are conscientiously and carefully executed.
An effective system of internal control has thus taken shape in the Company. Along with the
development of the Company, it will, as always, keep perfecting its corporate governance and
protecting the interests of all shareholders and stakeholders.
Non-compliance of corporate governance standards by the Company during the reporting
period: according to the Accounting Standards for Business Enterprises No.33—Consolidated
Financial Statements, the Financial Department of the Company should submit the Company’s
monthly financial statements around the 10th day of each month to CND, the main shareholder
holding 57.51% of the Company’s shares, for the need of the latter’s preparing its consolidated
statements.
At the Fifth Session of the Fifth Board of Directors of the Company held on 17 April 2007, the
Report Concerning the Submission of Monthly Financial Statements to the Substantial
Shareholder was reviewed and approved, and it was agreed that Financial Department shall
provide the company’s monthly financial statements to CND. On 25 August 2007, the Company
disclosed the details of submitting the financial statements to substantial shareholders in the
Self-inspection Report and Rectification Plan for Corporate Governance in 2007 of Shenzhen
Chiwan Wharf Holding Co., Ltd. In compliance with the requirements of the Shenzhen
Securities Regulatory Bureau, the Company delivered “Undisclosed Information Provided by
the Company to its Substantial Shareholders and Actual Controllers” to the Shenzhen Securities
Regulatory Bureau before the tenth day every month since September 2007, including the name
list of relevant parties and relevant information. The above-mentioned matters did not affect the
Company’s independence. In the future, the Company will disclose the relevant information in
due course at the request of the regulatory authorities.
Ⅱ. Profit and dividend distribution plan for 2008 and its implementation
As audited by PricewaterhouseCoopers Zhongtian Certified Public Accountants Co., Ltd., the
net profit of the Company for 2008 was RMB449, 036,125, and the accumulative attributable
profit was RMB514, 467,212.
1. In accordance with the Company Law and the Articles of Association of the Company,
RMB44,903,613, i.e. 10% of the Company’s net profit as audited for the year 2008 was to be
withdrawn as statutory surplus reserve;
2. It was planned that a cash dividend of RMB5.00 per ten shares (tax included) totaling
RMB322,381,865 would be paid based on the total share capital of 644,763,730 shares as at
the end of 2008.
After the aforesaid distribution, the retained profit of the Company was RMB147,181,734.
The said profit distribution plan was completed on 21 Jul. 2009, with the day of record for A
shares and the last trading day for B shares being 16 Jul. 2009, and the ex-dividend day being 17
Jul. 2009.Semi-Annual Report 2009－Chiwan Wharf
11
Ⅲ. For the middle of the year 2009, no interim profit distribution will be conducted and no
reserves will be transferred into shares.
Ⅳ. During the reporting period, the Company was not involved in any significant lawsuits
and arbitrations.
Ⅴ. During the reporting period, the Company did not conduct any significant asset
acquisition, sale or reorganization.
Ⅵ. In the reporting period, no shareholders holding over 30% shares of the Company put
forward and implemented plans of increasing the shares held by them.
Ⅶ. In the reporting period, there existed no new securities investments. The Company did not
acquire equity of financial enterprises such as commercial banks, securities companies,
insurance companies, trust companies and futures companies, or equity of the companies
to be listed.
Set out below was the equity of other listed company held by the Company, which was acquired
by the Company in the previous periods and carried down to the current period.
Unit: RMB
Stock
code Short name of the stock
Initial
investment
amount
Shareholding
percentage in
the listed
company
Book
value at
period-end
Gains/
(losses) in
reporting
period
Changes in
owners’ equity
during reporting
period
600377 JiangSu Expressway 1,120,000 0.02% 6,350,000 - 728,000
400032 Shenzhen Petrochemical
Industry (Group) Co., Ltd. 3,500,000 0.26% 382,200 - -
400009 Guangdong Guang Jian
Group Limited Company 27,500 0.02% 17,000 - -
Total 4,647,500 - 6,749,200 - 728,000
Ⅷ. Special explanation and independent opinion by independent directors
In accordance with the Circular on Relevant Issues Concerning Regulating Capital Flows between
Listed Companies and Related Parties and Provision of External Guaranty By Listed Companies
(ZJF [2003] No.56) and the Circular on Regulating Provision of Guarantees for Outside Parties by
Listed Companies (ZJF (2005) No.120) (hereinafter referred to as “the Circulars”), as well as the
Circular on 2009 Semi-Annual Reports of Listed Companies, Mr. Li Wuzhou, Mr. Hao Zhujiang
and Mr. Zhang Jianjun, all independent directors of the Company, have carefully and responsibly
examined the Company’s provision of guarantees for other parties and the capital occupation by its
controlling shareholder and other related parties, with a sense of responsibility to the Company, all
its shareholders and investors and the principle of seeking truth from facts. Upon the examination,
they made the relevant explanation as follows:
1. As at 30 Jun. 2009, the balance of guarantee provided to outside parties by the Company was
zero.Semi-Annual Report 2009－Chiwan Wharf
12
2. As at 30 Jun. 2009, the accumulative guarantee amount provided by the Company for its
wholly-owned and holding subsidiaries reached RMB241,120,000, taking up 9.15% of the
Company’s net assets as at 30 Jun. 2009, among which RMB38,720,000 was provided for a bank
loan for the Company’s holding subsidiary Chiwan Container Terminal Co., Ltd., and
RMB202,400,000 for the Company’s wholly-owned subsidiary Chiwan Wharf (Hong Kong) Ltd.
The aforesaid guarantees were in line of relevant laws and regulations concerning the provision
of guarantees for other parties by listed companies. And they were approved by the Company’s
Board of Directors according to relevant procedures and disclosed as obliged.
3. The Company strictly abided by the requirements of the Circulars. No funds occupation by its
controlling shareholder had been found by 30 Jun. 2009, nor that incurred in the previous periods
and carried down till 30 Jun. 2009. The funds flows between the Company and its related parties
in the reporting period were considered normal operational funds flows.
To sum up, the independent directors were of the opinion that the Company effectively controlled
its financial risks in the reporting period, without doing any harm to the interests of investors.
Ⅸ. Significant related transactions
1. Related transactions arising from routine operation
(1) Payment of Land use fees
Jan.-Jun. 2009 Jan.-Jun. 2008
CND RMB22,930,453 RMB18,384,284
Due to the need of routine operation, the Harbor Division of the Company and Chiwan Container
Terminal Co., Ltd. (CCT), in which the Company held a total of 55% equity directly and indirectly,
rented lands from CND for bulk cargo and container stacking. Recognized as frequent transactions
of the Company, the said transactions occurred in the previous years and will continue to occur in
the future.
Almost as same as the land rents in the western Shenzhen ports in 2009, the transaction price was a
fair market price decided through negotiation between transaction parties at RMB3.5—12.5/ sq.m..
According to the contract signed, the rent was paid by month and a penalty would be charged at a
ratio of 0.5% of the monthly rental fee for each day overdue.
In the report period, the aforesaid rents accounted for 63.63% of the Company’s total rental
expenses for stacking yards and offices, which caused a cost and expense of RMB22.93 million.
(2) Income from road transportation business
Jan.-Jun. 2009 Jan.-Jun. 2008
Mawan Companies RMB6,530,811 RMB8,877,003
Shenzhen Mawan Port Service Co., Ltd. and Shenzhen Magang Cangma Co., Ltd. (hereinafter
jointly referred to as “Mawan Companies”) were both clients of the Company in the business of
labor service contracting. The Company provided container horizontal transportation service and
other relevant services for Mawan Companies, which was considered a normal business of the
Company. Such business occurred in the previous years and will continue to occur in the future.Semi-Annual Report 2009－Chiwan Wharf
13
The prices of the aforesaid transactions were fair market prices decided through negotiation
between the parties involved, which were roughly the same as the labor service contracting fees in
the ports in West Shenzhen for the year 2009. And the charges of the labor service were paid on a
monthly basis.
In the report period, the income generated from the aforesaid transactions accounted for 14.65% of
income from the Company’s road transportation business, which brought the Company an operating
income reaching RMB6.53 million.
2. Related transactions concerning asset acquisition and sale
Transaction
party
Assets
sold or
disposed
Date of
sale
Transaction
price
Net profit
contributed
by the sold
asset from
year-begin
to
period-end
Gains/(losses)
from the asset
sale
Pricing
principle
Whether or
not the
ownership of
the asset
involved has
been fully
transferred
Whether or
not the
creditor’s
right and
liabilities
involved
have been
fully
transferred
Relationship
between
transaction
party and the
Company
CND
100%
equity of
Shenzhen
Chiwan
Oriental
Logistics
Co., Ltd.
5 Jun.
2009
RMB
4,917,694
RMB
(481,955)
RMB
(1,741,108)
Based on the
evaluated
value of the
net assets of
Shenzhen
Chiwan
Oriental
Logistics Co.,
Ltd. at 31
March 2009.
Yes Yes
The
Company’s
controlling
shareholder
3. Creditor’s rights and liabilities with related parties
Accounts receivable As at 30 Jun. 2009
RMB
As at 31 Dec. 2008
RMB
Shenzhen Nantian Oil Mills Co., Ltd. 1,989,290 972,527
Mawan Companies 944,021 1,046,835
Shenzhen Southseas Grains Industries Limited 1,138,810 1,141,401
Total 4,072,121 3,160,763
The accounts receivable as set out in the table above were resulted from the operational contacts of
the Company’s providing road transportation service and terminal handling service for its related
parties mentioned above.As at 30 Jun. 2009, the accounts receivable from related parties took up
2.03% of the Company’s total accounts receivable (2.17% in the year of 2008).
Long-term receivables As at 30 Jun. 2009
RMB
As at 31 Dec. 2008
RMB
Media Port Investments Ltd. 184,039,141 184,039,141
The long-term receivable as set out in the table above was resulted from the interest-free
shareholder’s contribution to an associated company of the Company within the total investment
amount prescribed in the relevant joint venture agreement. As at 30 Jun. 2009, the long-termSemi-Annual Report 2009－Chiwan Wharf
14
receivables from related parties accounted for 100% of the Company’s total long-term receivables
(also 100% in the year of 2008).
Accounts payable As at 30 Jun. 2009
RMB
As at 31 Dec. 2008
RMB
Shenzhen Haiqin Engineering Supervision Co., Ltd. 228,407 986,807
CND 4,431,038 4,466,812
Shenzhen Nantian Oil Mills Co., Ltd. 604,639 -
Total 5,264,084 5,453,619
The accounts payable as set out in the table above were resulted from the debts caused by the
Company’s renting lands and receiving engineering construction and supervision services from its
related parties mentioned above. As at 30 Jun. 2009, the accounts payable to related parties
amounted to 10.43% of the Company’s total accounts payable (9.32% in the year of 2008).
Other payables As at 30 Jun. 2009
RMB
As at 31 Dec. 2008
RMB
CND 351 7,215
Mawan Companies (a) 622,441 1,690,316
Total 622,792 1,697,531
As at 30 Jun. 2009, other payables to related parties took up 0.57% of the Company’s total other
payables (1.62% in the year 2008).
(a) The Company and Mawan Companies cooperated in conducting business activities with external
parties. And they shared the common expenses thus incurred according to the numbers of berths
each had. Concerning the mutually entrusted collection and disbursement of relevant fees incurred
in the course of settlement, the Company confirmed the accounts payable to Mawan Companies
after checking the relevant accounts with customers.
Ⅹ. Significant contracts
1. In the reporting period, the Company did not hold in trust, contract or lease any significant assets
of other companies, or vice versa.
2. In the reporting period, the Company did not provide any guarantee for external parties.
By the end of the reporting period, the Company had only provided bank loan guarantees for its
holding subsidiary Chiwan Container Terminal Co., Ltd. and its wholly-owned subsidiary
Chiwan Wharf (Hong Kong) Ltd., which were detailed as follows:Semi-Annual Report 2009－Chiwan Wharf
15
Guarantee
Amount of
guarantee
(HKD’000）
Term of guarantee
Subsisting
guarantee
liability
or not
Type of
guarantee
Procedures for
guarantee
Chiwan
Container
Terminal Co.,
Ltd.
44,000 2008.7.31-2010.7.25 Yes
Guarantee
with joint
liability
Reviewed and
approved at the First
Special Session of
the Sixth Board of
Directors for 2008
Chiwan Wharf
(Hong Kong)
Ltd.
230,000 2008.12.5-2010.12.2 Yes
Guarantee
with joint
liability
Reviewed and
approved at the Fifth
Special Session of
the Sixth Board of
Directors for 2008
By the end of the report period, the Company had provided guarantees for external parties totaling
RMB241.12 million, accounting for 9.15% of the Company’s net assets.
3. During the reporting period, the Company did not entrust others to manage its cash assets.
Ⅺ. Special commitments made by shareholders holding non-circulating share in share reform
process and the execution
Name of shareholder Special commitment Execution of commitment
Commitment on dividend policy: CND commits to keep
stable dividend policy as in the past, promises to put
forward dividend distribution proposal at Annual General
Meeting for 2006 and 2007, and the dividend payout ratio
shall not be less than 50% of the distributable profits
achieved in respective year, and promises to vote for it at
Annual General Meeting.
Executed.
The actual dividend payout
ratios for 2006 and 2007 were
60% and 50.02% of the
distributable profits achieved in
the respective year.
Commitment on increase of its share equity at the
Company: To avoid the unreasonable fluctuation of stock
price of the Company and boost investors confidence in
the Company, and at the same time to enhance its position
as controlling shareholder, CND will, within 2 months
after the share reform proposal be approved at the
Relevant Shareholders’ Meeting of A Share Market, buy
from stock market 9,406,540 shares (say 10% of all
tradable A shares not subject to trading moratorium of
94,065,400 after the execution of the share reform
proposal) when the price is not higher than RMB13.00.
Within 6 months after share equity increase plan is
executed, CND will not sell any shares thus bought
according to the said plan, otherwise the income from the
sale of shares will be possessed by all shareholders.
Executed.
CND did not buy the said shares
of the Company in the
commitment period due to that
the price of the Company’s A
shares was never below
RMB13.00 per share in the
relevant period.
China Nanshan
Development (Group)
Incorporation
Motivation scheme: In order to enhance shareholders’
confidence and boost initiatives of management team and
core staff of the Company, CND will, after the share
reform proposal is executed, choose to entrust the Board
of Directors of the Company through annual general
meeting to formulate and carry out motivation scheme
Executed.
CND submitted in Mar. 2009
the proposal concerning the
Report on Formulating and
Carrying out Equity Incentive
Mechanism of CWH to CWH’sSemi-Annual Report 2009－Chiwan Wharf
16
according to relevant laws and regulations, thus integrate
the interests of management team with the whole
shareholders of the Company.
2008 Annual Shareholders’
General Meeting, and voted for
the proposal at the meeting held
on 22 May 2009. The said
Report was reviewed and
approved at the meeting, and the
Board of Directors of CWH was
authorized to, in a proper time,
work out and implement the
equity incentive mechanism
according to relevant laws and
regulations.
Letter of Guarantee: CND commits that it will obtain,
before the registration date for the Relevant Shareholders’
Meeting of A Share Market, the letter of guarantee from
certain monetary institution recognized by Shenzhen
Stock Exchange, consenting to provide complete
guarantee to CND for the required amount of money
when put options granted to shareholders of tradable
shares be executed.
Executed.
Keep the Company as a listed one: CND commits that the
Company is undertaking Share Reform with a view to
address the problem of balancing the interests among
shareholders of circulating and non-circulating shares, but
not to quit from the stock market. CND promises to
implement actions to keep the Company as a listed one
within the period stipulated by relevant laws, rules and
regulations, and to disclose information in time, if the
shareholding structure does not conform to the
requirements for a listed company recognized by
Shenzhen Stock Exchange due to the execution of put
option.
Executed.
Ⅻ. Researches, interviews and visits received in the reporting period
In the reporting period, the Company received 23 visits and many phone calls from the investors
in a warmly and patient manner. The Company introduced to those investors particulars about
the Company and the development of its businesses, including the Company’s business
performance, investments, financial position and other matters concerned by the investors. All
the information disclosed was in line with relevant regulations of the Company Law, Securities
Law and Administrative Rules for Relationship with Investors. No significant undisclosed
information was leaked to certain parties. And the said visits were detailed in the table below:
Type Means Time Location Investor
Topics
discussed and
information
provided
UBS
Conference
Conference Jan,2009 ShangHai Clients of UBS
launched by
securities
firms
CLSA
Conference
June,2009 HongKong Clients of CLSA
Basic status of
the operations
and
investments ofSemi-Annual Report 2009－Chiwan Wharf
17
UBS
Conference
June,2009 Beijing Clients of UBS
Jan,2009 China Merchants Securities、Penghua fund
management、SYWG BNP Parisbas asset management、
Hua an fund management
Feb,2009 SYWG research、Everbright Pramerica Fund
Management、Blue Bridge China、Harvest Fund
Management、Everbright Securities.、Bank of
Communications Schroders、GF Securities、Orient
Securities Company Limited、ChangJiang Securities、
New China Asset Management、CITIC-prudential Fund
Management 、New Century Fund Management、
YinHua Fund Management、HuaTai Securities、Morgan
Stanley、Alliance Bernstein Investment、Merrill Lynch
(Asia Pacific)、Ping An securities 、Galaxy asset
Management、ICBC Credit Suisse Asset Management、
Guotai Asset Management
Apr,2009 CLSA limited、Templeton Asset Management、SYWG
research
May,2009 JPMorgan、TPG-AXON Capital、UOB KAY HIAN
(Hong Kong)、Deutsche Bank AG、Mirae Asset Global
Investments(Hong Kong)、BEA Union Investment
Management、CITIC Securities International
Investment Management(HK)、China International
Capital Corporation、Harvest Fund Management、
CEPHEI Investments、Value Partners、Neuberger
Investment Management Asia、Gold Sachs (China)
investor
reception
One-on-one
meeting
June,2009
Conference
room of the
Company
Kylin Management、Matthews International Capital
Management、Greenwoods Asset Management、Asian
Century Quest Capital,、UBS Securities、China
Southern Fund Management、Fortune SGAM Fund
Management、Fullgoal Fund Management、Polaris
International Securities Investment Trust、GUOTAI
JUNAN Securities、Aerospace Science & Technology
Finance
the Company
and the
financial
position of the
Company
Information
provided: Brief
introductions of
the Company
ⅩⅢ. Other significant events
Event Date of
disclosure
Public
Notice No.
Newspaper for
disclosure and
page number
Website for
disclosure
Shares totaling 324,316,070 subject
to trading moratorium held by CND,
the controlling shareholder of the
Company, were listed for trading on
19 Jun. 2009.
18 Jun. 2009 2009-015
Securities
Times A8; Ta
Kung Pao B9
http://www.cninfo.
com.cnSemi-Annual Report 2009－Chiwan Wharf
18
PART Ⅵ FINANCIAL REPORT (ATTACHED BEHIND, UN-AUDITED)
PART Ⅶ DOCUMENTS AVAILABLE FOR REFERENCE
1. Full-text of the Company’s 2009 Semi-Annual Report carrying the signature of Chairman of the
Board;
2. 2009 Semi-Annual Financial Report carrying the signatures of the Company’s Legal
Representative, Chief Financial Officer and Financial Manager;
3. Original copies of all documents and public notices thereof disclosed in the reporting period on
Securities Times and Ta Kung Pao; and
4. Other relevant materials.
For and on behalf of the Board
Wang Fen
Chairman
Shenzhen Chiwan Wharf Holdings Limited
Dated 29th August, 2009SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS AND REPORT
FOR THE SIX MONTHS ENDED
30 JUNE 2009
[English Translation for Reference Only. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.]SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS AND REPORT
FOR THE SIX MONTHS ENDED
30 JUNE 2009
[English translation for reference only]
Contents Page
Consolidated and the company’s balance sheets 1 - 2
Consolidated and the company’s income statements 3
Consolidated and the company’s cash flow statements 4
Consolidated statement of changes in owners’ equity 5
The company’s statement of changes in owners’ equity 6
Notes to financial statements 7 - 74- 1 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 30 JUNE 2009
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
ASSETS Note(s)
30 June 2009
The Group
31 December 2008
The Group
30 June 2009
The Company
31 December 2008
The Company
Current assets
Cash at bank and on
hand 8(1) 594,205,455 641,475,910 411,258,714 298,644,660
Notes receivable 8(2) - 7,846,264 - 7,846,264
Dividends receivable - - 313,303,127 404,741,735
Accounts receivable 8(3),13(1) 200,894,232 145,675,880 15,028,435 11,338,751
Advances to suppliers 8(4) 13,287,117 10,336,323 466,605 111,253
Interest receivable 342,000 454,878 5,280,795 5,277,795
Other receivables 8(3),13(1) 13,112,498 10,180,699 141,122,755 132,957,981
Inventories 8(5) 27,555,246 27,808,298 1,168,006 837,989
Total current assets 849,396,548 843,778,252 887,628,437 861,756,428
Non-current assets
Available-for-sale
financial assets 8(6) 6,350,000 5,440,000 6,350,000 5,440,000
Long-term receivables 8(7),9(4),9(6) 184,039,141 184,039,141 164,228,079 164,228,079
Long-term equity
investments 8(8),13(2) 304,772,133 282,844,083 842,005,954 853,904,176
Investment properties 8(9) 28,605,179 29,048,953 20,535,112 20,860,490
Fixed assets 8(10) 2,185,387,609 2,261,881,360 177,272,077 184,480,910
Construction in progress 8(11) 366,200,182 301,348,064 - 168,540
Disposal of fixed assets 676,658 - 436,593 -
Intangible assets 8(12) 1,090,421,348 1,075,111,068 72,233,687 73,752,628
Goodwill 8(13) 10,858,898 10,858,898 - -
Long-term prepaid
expenses 8(14) 68,746,920 67,625,291 5,682,883 5,818,207
Long-term prepayment 8(15) 58,772,833 58,772,833 - -
Deferred tax assets 8(27) 29,798,123 32,980,105 10,938,001 12,635,845
Total non-current assets 4,334,629,024 4,309,949,796 1,299,682,386 1,321,288,875
TOTAL ASSETS 5,184,025,572 5,153,728,048 2,187,310,823 2,183,045,303- 2 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED AND COMPANY BALANCE SHEETS (CONTINUED)
AS AT 30 JUNE 2009
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND
OWNERS’ EQUITY Note(s)
30 June 2009
The Group
31 December 2008
The Group
30 June 2009
The Company
31 December 2008
The Company
Current liabilities
Short-term borrowings 8(17) 627,440,000 829,840,000 143,440,000 178,640,000
Notes payable 8(18) 2,610,870 8,681,000 - -
Accounts payable 8(19) 50,488,727 58,507,695 10,378,553 13,231,145
Advances from customers 8(20) 3,468,493 650,306 1,619,478 16,388
Employee benefits payable 8(21) 23,743,850 39,286,759 18,189,142 21,825,885
Dividends payable 8(22) 578,933,294 271,365,815 322,381,865 -
Taxes payable 8(23) 17,069,286 27,885,431 (5,485,408) 1,448,453
Interests payable - 4,864,951 22,275 2,909,946
Other payables 8(24) 109,721,831 104,635,820 269,733,320 209,280,593
Deferred revenue 8(25) 4,951,750 4,951,750 - -
Total current liabilities 1,418,428,101 1,350,669,527 760,279,225 427,352,410
Non-current liabilities
Long-term borrowings 8(26) 404,800,000 404,800,000 132,000,000 132,000,000
Deferred revenue 8(25) 67,261,269 69,737,144 - -
Deferred tax liabilities 8(27) 1,046,000 864,000 1,046,000 864,000
Total non-current liabilities 473,107,269 475,401,144 133,046,000 132,864,000
Total liabilities 1,891,535,370 1,826,070,671 893,325,225 560,216,410
Owners' equity
Paid-in capital 8(28) 644,763,730 644,763,730 644,763,730 644,763,730
Capital surplus 8(29) 144,898,555 144,170,555 154,094,828 153,366,828
Surplus reserve 8(30) 355,134,736 355,134,736 355,134,736 355,134,736
Undistributed profits 8(31) 1,502,307,791 1,624,545,217 139,992,304 469,563,599
Foreign exchange
translation differences (13,349,891) (13,349,891) - -
Total equity attributable to
equity holders of the
Company 2,633,754,921 2,755,264,347 1,293,985,598 1,622,828,893
Minority interests 8(32) 658,735,281 572,393,030 - -
Total owners' equity 3,292,490,202 3,327,657,377 1,293,985,598 1,622,828,893
TOTAL LIABILITIES AND
OWNERS’ EQUITY 5,184,025,572 5,153,728,048 2,187,310,823 2,183,045,303
The accompanying notes form an integral part of these financial statements.- 3 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED AND COMPANY INCOME STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
The accompanying notes form an integral part of these financial statements.
Items Note(s)
Jan.-Jun. 2009
The Group
Jan.-Jun. 2008
The Group
Jan.-Jun. 2009
The Company
Jan.-Jun.2008
The Company
Revenue 8(33),13(3) 714,358,140 975,980,451 59,398,927 104,002,444
Less: Cost 8(33),13(3) (341,704,183) (383,929,848) (59,758,174) (68,629,370)
Tax and levies on operations 8(34) (24,866,617) (33,725,006) (2,146,458) (3,441,734)
General and administrative
expenses
(49,078,801) (65,259,506) (17,337,513) (24,917,705)
Finance income/(expenses) - net 8(35) (10,538,788) (15,065,448) (1,522,266) (7,374,075)
Asset impairment losses 8(36) 651,536 - 651,536 -
Add: Investment income 8(37),13(4) 31,207,492 51,566,710 9,526,319 32,702,196
Including: share of results of
associates
8(37)
25,678,050 51,566,710 (3,148,222) (3,584,026)
Operating profit 320,028,779 529,567,353 (11,187,629) 32,341,756
Add: Non-operating income 8(38) 7,836,283 493,918 59,841 15,776
Less: Non-operating expenses 8(38) (350,423) (1,610,495) (237,621) (659,462)
Including: Loss on disposals of
non-current assets (97,859) (758,148) (29,907) (425,122)
Total profit 327,514,639 528,450,776 (11,365,409) 31,698,070
Less: Income tax (expenses)/ income 8(39) (36,243,693) (44,903,166) 4,175,979 (791,835)
Net profit 291,270,946 483,547,610 (7,189,430) 30,906,235
Attributable to equity holders of the
Company 200,144,439 330,964,205
Minority interest 91,126,507 152,583,405
Earnings per share
(attributable to equity holders of the
Company)
Basic earnings per share 8(40) 0.310 0.513
Diluted earnings per share 8(40) 0.310 0.513
Comprehensive income 8(41) 728,000 (10,439,108) 728,000 (3,681,800)
Total comprehensive income 291,998,946 473,108,502 (6,461,430) 27,224,435
Attributable to equity holders of the
Company 200,872,439 323,565,886
Minority interest 91,126,507 149,542,616- 4 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Items Note(s)
Jan.-Jun. 2009
The Group
Jan.-Jun. 2008
The Group
Jan.-Jun. 2009
The Company
Jan.-Jun.2008
The Company
1. Cash flows from operating activities
Cash received from rendering of services 658,345,387 932,385,962 59,405,302 76,774,836
Refund of taxes and levies 71,864 - - -
Cash received relating to other operating activities 17,788,634 31,124,514 126,523,165 234,507,200
Sub-total of cash inflows 676,205,885 963,510,476 185,928,467 311,282,036
Cash paid for goods and services (178,223,532) (211,971,354) (45,220,194) (44,346,712)
Cash paid to and on behalf of employees (91,411,953) (114,897,044) (22,994,571) (30,607,351)
Payments of taxes and levies (92,549,662) (76,429,461) (4,791,565) (3,205,389)
Cash paid relating to other operating activities (19,955,803) (13,312,387) (270,444) (790,516)
Sub-total of cash outflows (382,140,950) (416,610,246) (73,276,774) (78,949,968)
Net cash flows from operating activities 8(42) 294,064,935 546,900,230 112,651,693 232,332,068
2. Cash flows from investing activities
Cash received from disposals of investments - - 70,408,776 38,000,000
Cash received from returns on investments 11,020,550 142,068,566 65,156,097 54,597,101
Net cash received from disposals of fixed
assets and intangible assets 792,685 2,734,690 61,350 530,000
Net cash received from disposal of
subsidiary or other operating business units 1,961,995 - 2,458,847 -
Sub-total of cash inflows 13,775,230 144,803,256 138,085,070 93,127,101
Cash paid to purchase fixed assets,intangible assets
and other long-term assets (134,698,622) (156,662,820) (3,558,085) (4,489,050)
Cash paid relating to other investing activities - (40,000,000) (92,408,776) (75,523,511)
Sub-total of cash outflows (134,698,622) (196,662,820) (95,966,861) (80,012,561)
Net cash flows from investing activities (120,923,392) (51,859,564) 42,118,209 13,114,540
3. Cash flows from financing activities
Cash received from borrowings 143,440,000 245,340,000 143,440,000 188,940,000
Cash repayments of borrowings (345,840,000) (701,524,000) (178,640,000) (588,940,000)
Cash payments for interest expenses and
distribution of dividends or profits (17,835,998) (24,087,952) (6,955,848) (7,588,086)
Including: dividends paid to minority
shareholders of subsidiaries - - - -
Other cash payments relating to financing activities (176,000) - - -
Sub-total of cash outflows (363,851,998) (725,611,952) (185,595,848) (596,528,086)
Net cash flows from financing activities (220,411,998) (480,271,952) (42,155,848) (407,588,086)
4.Effect of foreign exchange rate changes on cash
and cash equivalents - - - -
5. Net (decrease)/increase in cash and cash
equivalents (47,270,455) 14,768,714 112,614,054 (162,141,478)
Add: Cash and cash equivalents at beginning of year 8(42) 641,475,910 781,587,534 298,644,660 570,266,835
6.Cash and cash equivalent at end of year 8(42) 594,205,455 796,356,248 411,258,714 408,125,357
The accompanying notes form an integral part of these financial statements.- 5 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Items Note(s) Attributable to equity holders of the Company
Paid-in capital Capital surplus Surplus reserves Undistributed profits Translation difference Minority interest Total owners' equity
Balance at 1 January 2008 644,763,730 168,577,210 1,094,116,893 679,821,265 (1,415,833) 558,758,486 3,144,621,751
Movement for the year ended 31 December 2008
Net profit 642,891,604 301,517,573 944,409,177
Gains recognised directly in owners' equity
- net changes in fair value of available-for-sale
financial assets 8(29) (4,252,000) (4,252,000)
- net changes in fair value of hedging instruments 8(29) (20,187,704) (16,517,214) (36,704,918)
- translation difference (11,934,058) (11,934,058)
- others 33,049 33,049
Sub-total (24,406,655) （11,934,058） (16,517,214) (52,857,927)
Profit appropriation
- appropriation to surplus reserves 8(30) 142,010,813 (142,010,813) -
- profit distribution to equity owners 8(31) (437,149,809) (271,365,815) (708,515,624)
Transfer within owner's equity
- surplus reserves used to offset accumulated
losses (880,992,970) 880,992,970 -
Balance at 31 December 2008 644,763,730 144,170,555 355,134,736 1,624,545,217 (13,349,891) 572,393,030 3,327,657,377
Balance at 1 January 2009 644,763,730 144,170,555 355,134,736 1,624,545,217 (13,349,891) 572,393,030 3,327,657,377
Movement for the six months ended 30 June 2009
Net profit 200,144,439 91,126,507 291,270,946
Gains/(losses) recognised directly in owners' equity
- net changes in fair value of available-for-sale
financial assets 8(29) 728,000 728,000
- net changes in fair value of hedging instrument 8(29)
- translation difference
- others
Sub-total 728,000 728,000
Profit appropriation
- appropriation to surplus reserves 8(30)
- profit distribution to equity owners 8(31) (322,381,865) (4,784,256) (327,166,121)
Transfer within owner's equity
- surplus reserves used to offset accumulated
losses 8(30)
Balance at 30 June 2009 644,763,730 144,898,555 355,134,736 1,502,307,791 (13,349,891) 658,735,281 3,292,490,202
The accompanying notes form an integral part of these financial statements.- 6 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Items Note(s) Paid-in capital Capital surplus Surplus reserves Undistributed profits Total owners' equity
Balance at 1 January 2008 644,763,730 157,618,828 1,094,116,893 (281,304,874) 1,615,194,577
Movement for the year ended 31 December 2008
Net profit - - - 449,036,125 449,036,125
Losses recognised directly in owners' equity
- net changes in fair value of available-for-sale financial assets 8(29) - (4,252,000) - - (4,252,000)
Profit distribution
- appropriation to surplus reserves 8(30) - - 142,010,813 (142,010,813) -
- profit distribution to equity owners 8(31) - - - (437,149,809) (437,149,809)
Transfer within owner's equity
- surplus reserves used to offset accumulated losses 8(30) - - (880,992,970) 880,992,970 -
Balance at 31 December 2008 644,763,730 153,366,828 355,134,736 469,563,599 1,622,828,893
Balance at 1 January 2009 644,763,730 153,366,828 355,134,736 469,563,599 1,622,828,893
Movement for the six months ended 30 June 2009
Net profit - - - (7,189,430) (7,189,430)
Losses recognised directly in owners' equity
- net changes in fair value of available-for-sale financial assets 8(29) - 728,000 - - 728,000
Profit distribution
- appropriation to surplus reserves 8(30) - - - - -
- profit distribution to equity owners 8(31) - - - (322,381,865) (322,381,865)
Transfer within owner's equity
- surplus reserves used to offset accumulated losses 8(30) - - - - -
Balance at 30 June 2009 644,763,730 154,094,828 355,134,736 139,992,304 1,293,985,598
The accompanying notes form an integral part of these financial statements.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 7 -
1. General information
Shenzhen Chiwan Wharf Holdings Limited (the “Company”) was incorporated in September
1982 in Shenzhen, the People’s Republic of China (the “PRC”), by China Nanshan Development
(Group) Ltd (the “Nanshan Group”), and was registered a sino-foreign joint venture enterprise in
July 1990. In January 1993, as approved by the Shenzhen municipal government with document
SFBF (1993)357, the Company was reorganized into a joint stock limited company. In February
1993, the Company issued, by public offering, the domestic shares (“A shares”) of 46,000,000
shares and domestically listed foreign shares (“B shares”) of 40,000,000 shares. Both shares
were listed in Shenzhen Stock Exchange in May 1993.
In June 1994, 31,047,000 bonus shares were issued in a proportion of “one bonus share for
every ten shares”. In June, the bonus A shares and bonus B shares held by Nanshan Group
were listed in Shenzhen Stock Exchange. In December 1995, the Company issued additional
40,000,000 B shares, consequently, the total volume of the Company’s shares rose to
381,517,000.
In June 2004, the directors of the Company resolved to increase the share capital by means of
capitalization of the share premium and capital reserves of the Company to the extent that 3
additional ordinary shares were issued to each shareholder holding 10 shares of the Company.
As the result, the total volume of shares was increased from 381,517,000 to 495,972,100.
In July 2005, again the directors of the Company resolved to increase the share capital by
means of capitalization of the share premium and capital reserves of the Company to the extent
that 3 additional ordinary shares were issued to each shareholder holding 10 shares of the
Company
Consequently, the total volume of shares was increased from 495,972,100 to 644,763,730.
Pursuant to the relevant rules and regulations issued by the PRC authorities and approval from
State-owned Asset Supervision and Administration Commission with document No. (2006)405,
share segregation reform of the Company was performed in May 2006. Nanshan Group, the non
public shares shareholder of the Company, offered RMB11.5 in cash, 1 share and 8 put options,
to the holders of every 10 listed A shares. In return the listed A shares shareholders agree to
allow the non public shares held by Nanshan Group be converted into listed A shares. From 30
May 2006, the non public A shares held by Nanshan Group (original volume less those offered to
tradable A shares shareholders) become listed with restriction on disposal for certain lock up
period. As to the put options offered by Nanshan Group, during the required exercise period from
23 May 2007 to 29 May 2007, none was actually exercised by listed A shares shareholders.
The lock up period for two batches of A shares with 23,243,415 share each held by the Nanshan
Group with restriction on disposal expired on 3 July 2007 , on 6 June 2008and on 19 June 2009 ,
respectively.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 8 -
1 General information (continued)
The Company and its subsidiaries (collectively the “Group”) are principally engaged in the
provision of cargo packing, cargo handling, container terminal, warehousing, land and sea
transportation services.
These consolidated financial statements have been approved for issue by the Board of Directors
on 27 August 2009.
2. Basis of preparation
The Group prepared financial statements in accordance with the Basic Standard and 38 specific
standards of Accounting Standards for Business Enterprises issued by Ministry of Finance of the
PRC on 15 February 2006, Application Guidance of Accounting Standard for Business
Enterprises, Interpretation of Accounting Standards for Business Enterprises and other
regulations issued thereafter (hereafter referred to as “the Accounting Standard for Business
Enterprises”, “China Accounting Standards” or “CAS”).SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 9 -
3. Statement of compliance with the Accounting Standards for Business Enterprises
The consolidated and the Company’s financial statements for the six months ended 30 June
2009 truly and completely present the financial position as of 30 June 2009 and the operating
results, cash flows and other information for the six months ended of the Group and Company in
compliance with the Accounting Standards for Business Enterprises.
4. Summary of significant accounting policies and accounting estimates
(1) Accounting period
The Company’s accounting year starts on 1 January and ends on 31 December.
(2) Recording currency
The recording currency is Renminbi (RMB)
(3) Basis of measurement
The financial statements have been prepared the historical cost convention, unless otherwise
stated adopting fair value, net realisable value or present value method.
(4) Foreign currency translation
(a) Transactions and balances
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the
dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currency are translated into
RMB using the spot exchange rate at the balance sheet date. Exchange differences arising from
these translations are recognised in profit or loss for the current period, except for those
attributable to foreign currency borrowings that have been taken out specifically for the
acquisition, construction or production of qualifying assets, which are capitalised as part of the
cost of those assets. Non-monetary items denominated in foreign currency that are measured in
terms of historical cost are translated at the balance sheet date using the spot exchange rate at
the date of the transaction. The effect of exchange rate changes on cash is presented separately
in the cash flow statement.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 10 -
4 Summary of significant accounting policies and accounting estimates (continued)
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for oversea businesses are translated at the
spot exchange rate on the balance sheet date. Among the owner’s equity items, the items other
than “undistributed profits” are translated at the spot exchange rate of the transaction date. The
income and expense items in the income statements of oversea businesses are translated at the
spot exchange rate of the transaction date. The differences arising from the above translation
are presented separately in the owner’s equities. The cash flows of oversea businesses are
translated at the spot exchange rate on the date of the cash flows. The effect of exchange rate
changes on cash is presented separately in the cash flow statement.
(5) Cash and cash equivalents
For the purpose of the cash flow statement, cash comprises cash in hand and deposits held at
call with bank. Cash equivalents refer to short-term and highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
(6) Financial assets
Financial assets are classified into the following categories at initial recognition: financial assets
at fair value through profit or loss, loans and receivables, available-for-sale financial assets and
held-to-maturity investments. The classification of financial assets depends on the Group’s
intention and ability to hold the financial assets.
(a) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for the purpose of
selling in the short term, which are presented as financial assets held for trading on the balance
sheet.
(b) Loans and receivables
Loans and receivables, including accounts receivable and other receivables, are non-derivative
financial assets with fixed or determinable payments that are not quoted in an active market
(Note 4 (7)).
(c) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated
in this category or not classified in any of the other categories at initial recognition.
Available-for-sale financial assets are included in other current assets in the balance sheet if
management intends to dispose of them within 12 months of the balance sheet date.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 11 -
4 Summary of significant accounting policies and accounting estimates (continued)
(6) Financial assets (continued)
(d) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed maturity and fixed or
determinable payments that management has the positive intention and ability to hold to
maturity. Held-to-maturity investments with maturities less than 12 months of the balance sheet
date are included in other current assets or current portion of non-current assets on the balance
sheet.
(e) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a
party to the contractual provisions of the financial instrument. In the case of financial assets at
fair value through profit or loss, the related transaction costs occurred at the time of acquisition
are recognised in profit or loss for the current period. For other financial assets, transaction costs
that are attributable to the acquisition of the financial assets are included in their initial
recognition amounts. Financial assets are derecognised when the contractual rights to receive
the cash flows from the financial assets have expired, or all substantial risks and rewards of
ownership of the financial assets have been transferred.
Financial assets at fair value through profit or loss and available-for-sale financial assets are
subsequently measured at fair value. Investments in equity instruments are measured at cost
when they do not have a quoted market price in an active market and whose fair value cannot be
reliably measured. Receivables and held-to-maturity investments are measured at amortised
cost using the effective interest method.
A gain or loss arising from a change in the fair value of financial assets at fair value through profit
or loss is recognised in profit or loss. Interests and cash dividends received during the period in
which such financial assets are held, as well as the gains or losses arising from the disposal of
the assets are recognised in profit or loss for the current period.
A gain or loss arising from a change in fair value of an available-for-sale financial asset is
recognised directly in equity, except for impairment losses and foreign exchange gains and
losses arising from the translation of monetary financial assets. When such financial asset is
derecognised, the cumulative gain or loss previously recognised in equity is recognised in profit
or loss for the current period. Interests on available-for-sale investments in debt instruments
are calculated using the effective interest method during the period in which such investments
are held and cash dividends declared by the investee on available-for-sale investments in equity
instruments are recognised as investment income in profit or loss.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 12 -
4 Summary of significant accounting policies and accounting estimates (continued)
(6) Financial assets (continued)
(f) Impairment of financial assets
The Group assesses the carrying amount of a financial asset other than that at fair value through
profit or loss at each balance sheet date. If there is objective evidence that the financial asset is
impaired, the Group shall determine the amount of any impairment loss.
If an impairment loss on a financial asset carried at amortised cost has been incurred, the
amount of loss is measured as the difference between the asset’s carrying amount and the
present value of estimated future cash flows (excluding future credit losses that have not been
incurred). If there is objective evidence that the value of the financial asset recovered and the
recovery is related objectively to an event occurring after the impairment was recognised, the
previously recognised impairment loss is reversed and the amount of reversal is recognised in
profit or loss.
In the case of a significant or prolonged decline in the fair value of an available-for-sale financial
asset, the cumulative loss arising from the decline in fair value that had been recognised directly
in equity is removed from equity and recognised in impairment loss. For an investment in debt
instrument classified as available-for-sale on which impairment losses have been recognised, if,
in a subsequent period, its fair value increases and the increase can be objectively related to an
event occurring after the impairment loss was recognised in profit or loss, the previously
recognised impairment loss is reversed and recognised in profit or loss for the current period. For
an investment in an equity instrument classified as available-for-sale on which impairment losses
have been recognised, if, in a subsequent period, its fair value increases and the increase can
be objectively related to an event occurring after the impairment loss was recognised in profit or
loss, the previously recognised impairment loss is reversed and directly recognised in equity.
If an impairment loss incurred on an investment in an equity instrument not quoted in an active
market and whose fair value cannot be reliably measured, the amount of loss is measured as the
difference between the asset’s carrying amount and the present value of estimated future cash
flows of similar financial assets, capitalized based on the returns ratio of the market at the same
time. The impairment losses are not allowed to be reversed even if the value is recovered in a
subsequent period.
(7) Receivables
Receivables comprise accounts receivable and other receivables. Accounts receivable arising
from rendering of services are initially recognised at fair value of the contractual payments from
the customer. Receivables are presented at amortised cost using the effective interest method
net of provision for bad debts.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 13 -
4 Summary of significant accounting policies and accounting estimates (continued)
(7) Receivables (continued)
Receivables that are individually significant are subject to separate impairment assessment, if
there is objective evidence that the Group will not be able to collect the full amounts according to
the original terms, a provision for impairment of the receivable is established at the difference
between the carrying amount of the receivable and the present value of estimated future cash
flows.
Receivables that are not individually significant together with those receivables that have been
individually evaluated for impairment and found not to be impaired are grouped on the basis of
similar credit risk characteristics. The impairment losses are determined, considering the current
conditions, on the basis of historical loss experience for the groups of receivables with the similar
credit risk characteristics.
(8) Inventories
Inventories include spare parts, fuel and low cost consumables, and are presented at the lower
of cost and net realisable value.
Inventories are initially recognized at cost. Cost of spare parts and fuel is determined using the
weighted average method. Low cost consumables are expensed upon issuance.
Provisions for declines in the value of inventories are determined at the carrying value of the
inventories net of their net realisable value. Net realisable value is determined based on the
estimated selling price in the ordinary course of business, less the estimated costs to completion
and estimated costs necessary to make the sale and relevant taxes.
The Group adopts the perpetual inventory system.
(9) Hedging activities
Hedges are classified as fair value hedges, cash flow hedges, and hedges of net investment in
an overseas operation. The Group has cash flow hedges in this year. Cash flow hedge refers to
a hedging of the risk to changes in cash flow. Such changes in cash flow are attributable to a
particular risk associated with a recognized asset or liability or a highly probable forecast
transaction and could affect profit or loss.
The Group documents at the inception of the transaction the relationship between hedging
instruments and hedged items, as well as its risk management objective and strategy for
undertaking various hedging transaction. The Group also documents its assessment, both at
hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging
transactions are highly effective in offsetting changes in cash flows of hedged items.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 14 -
4 Summary of significant accounting policies and accounting estimates (continued)
(9) Hedging activities(continued)
The effective portion of changes in the fair value of derivatives that are designated and qualify as
cash flow hedges is recognized in equity. The gain or loss relating to the ineffective portion is
recognised immediately in the income statement within ‘other gains/ (losses) - net’.
Amounts accumulated in equity are recycled in the income statement in the periods when the
hedged item affects profit or loss (for example, when the forecast sale that is hedged takes
place). The gain or loss relating to the ineffective portion is recognized in the income statement
within ‘other gains/ (losses) - net’.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for
hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity
and is recognised when the forecast transaction is ultimately recognised in the income
statement. When a forecast transaction is no longer expected to occur, the cumulative gain or
loss that was reported in equity is immediately transferred to the income statement within other
‘gains/(losses) – net’.
(10) Long-term equity investments
Long-term equity investments comprise the Company’s equity investments in its subsidiaries, the
Group’s long-term equity investments in its joint ventures and associates as well as the long-term
equity investments where the Group does not have control, joint control or significant influence
over the investees, and which are not quoted in an active market and whose fair value cannot be
reliably measured.
(a) Subsidiaries
Subsidiaries are all investees over which the Company is able to control, i.e. has the power to
govern the financial and operating policies so as to obtain benefits from their operating activities.
The existence and effect of potential voting rights (including that derived from the convertible
bonds and warrants that are currently convertible or exercisable) are considered to determine
whether the Group has control over the investee. Investments in subsidiaries are measured
using the cost method in the Company’s financial statements, and adjusted using the equity
method when preparing the consolidated financial statements.
Long-term equity investments accounted for using the cost method are measured at the initial
investment cost. Investment income is recognised in profit or loss for the cash dividends or profit
declared by the investee. Such recognition is made only to the extent of the distributions
received from accumulated net profits of the investees arising after the investment was made.
Cash dividends or distributions received in excess of such profits are regarded as a recovery of
the initial cost of the investments.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 15 -
4 Summary of significant accounting policies and accounting estimates (continued)
(10) Long-term equity investments (continued)
(b) Associates
Associates are all investees that the Group has significant influence on their financial and
operating policies.
Investments in associates are accounted for using the equity method. Where the initial
investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net
assets at the time of acquisition, the investment is initially measured at cost. Where the initial
investment cost is less than the Group’s share of the fair value of the investee’s identifiable net
assets at the time of acquisition, the difference is included in profit or loss for the current period
and the cost of the long-term equity investment is adjusted accordingly.
When using the equity method of accounting, the Group recognised the investment income
based on its share of net profit or loss of the investee. The Group discontinues recognising its
share of net losses of an investee after the carrying amount of the long-term equity investment
together with any long-term interests that, in substance, form part of the investor’s net
investment in the investee are reduced to zero. However, if the Group has obligations for
additional losses and the conditions on recognition of provision are satisfied in accordance with
the accounting standards on contingencies, the Group continues to recognise the investment
losses and the provision. For changes in owner’s equity of the investee other than those arising
from its net profit or loss, the Group record directly in capital surplus its proportion, provided that
the Group’s proportion of shareholding in the investee remains unchanged. The carrying amount
of the investment is reduced by the Group’s share of the profit or cash dividends declared by an
investee. The unrealised profits or losses arising from the intra-group transactions between the
Group and its investees are eliminated to the extent of the Group’s interest in the investees, on
the basis of which the investment gain or losses are recognised. The loss on the intra-group
transaction between the Group and its investees, of which the nature is asset impairment, is
recognised in full amount, and the relevant unrealised gain or loss is not allowed to be
eliminated.
(c) Other long-term equity investments
Other long-term equity investments where the Group does not have control, joint control or
significant influence over the investee, and which are not quoted in an active market and whose
fair value cannot be reliably measured are accounted for using the cost method.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 16 -
4 Summary of significant accounting policies and accounting estimates (continued)
(11) Investment property
Investment property, including land use rights that have already been leased out and land use
rights held for subsequent transfer on capital appreciation and buildings that held for the purpose
of lease, is measured initially at its actual cost. Subsequent expenditures incurred for an
investment property is included in the cost of the investment property when it is probable that
economic benefits associated with the investment property will flow to the Group and its cost can
be reliably measured, otherwise the expenditure is recognised in profit or loss in the period in
which they are incurred.
The Group adopts the cost model for subsequent measurement of the investment property.
Buildings and land use rights are depreciated or amortised to allocate the costs of these assets
to their estimated net residual values over their estimated useful lives. The estimated useful
lives, the estimated net residual values expressed as a percentage of cost and the annual
depreciation (amortisation) rates of the investment properties are as follows:
Estimated
useful lives
Estimated residual
value
Annual depreciation
(amortisation) rate
Buildings 24 - 32 years 10% 2.7% to 3.6%
Land use rights 7 - 37 years - 2.6% to 12.5%
When an investment property is changed to an owner-occupied property, it is transferred to fixed
assets or intangible assets at the date of the change. When an owner-occupied property is
changed to be held to earn rental or for capital appreciation, the fixed asset or intangible asset is
transferred to investment property at the date of the change at the relevant carrying amount of
the property.
The estimated useful life, net residual value of an investment property and the depreciation
(amortisation) method applied are reviewed, and adjusted as appropriate at each financial
year-end.
An investment property is derecognised on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
The amount of proceeds on sale, transfer, retirement or damage of an investment property less
its carrying amount and related taxes and expenses is recognised in profit or loss for the current
period.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 17 -
4 Summary of significant accounting policies and accounting estimates (continued)
(12) Fixed assets
Fixed assets comprise harbor facilities, warehouses, container yards and buildings, machinery
and equipment, motor vehicles, cargo ships and tugboats, and other equipments. Fixed assets
purchased or constructed by the Group are initially measured at cost at the time of acquisition.
Fixed assets contributed by the State-owned shareholders at the incorporation of a limited
company are initially recorded at the valuation amount recognized by the State-owned assets
supervision and administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset
when it is probable that economic benefits associated with the fixed asset will flow to the Group
and its cost can be reliably measured. The carrying amount of those parts that are replaced is
derecognized and all other subsequent expenditures are recognised in profit or loss in the period
in which it is incurred.
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to
their estimated residual values over their estimated useful lives. For the fixed assets being
provided for impairment loss, the related depreciation charge is prospectively determined based
upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated residual values expressed as a percentage of cost and
the annual depreciation rates are as follows:
Estimated
useful lives
Estimated
residual value
Annual
depreciation rate
Harbor facilities 5 - 50 years 10% 1.8%-18%
warehouses, container yards and buildings 5 - 40 years 10% 2.25%-18%
machinery and equipments 5 - 15 years 10% 6%-18%
motor vehicles, cargo ships and tugboats 5 - 20 years 10% 4.5%-18%
other equipments 5 years 10% 18%
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation
method applied to the asset are reviewed, and adjusted as appropriate at least at each financial
year-end.
A fixed asset classified as an asset held for sale is presented as other current asset at the lower
of the carrying amount and the fair value less costs to sell. Any excess of the carrying amount
over the fair value less the costs to sell is recognised as asset impairment loss.
A fixed asset is derecognised on disposal or when no future economic benefits are expected
from its use or disposal. The amount of proceeds on sale, transfer, retirement or damage of a
fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or
loss for the current period.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 18 -
4 Summary of significant accounting policies and accounting estimates (continued)
(13) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs,
other costs necessary to bring the fixed assets ready for their intended use. Borrowing costs that
are eligible for capitalization are capitalized before the assets are ready for their intended use.
Construction in progress is transferred to fixed assets when the assets are ready for their
intended use, and depreciation begins from the following month.
(14) Intangible assets
Intangible assets including land use rights and computer software are measured at actual cost.
Fixed assets contributed by the State-owned shareholders at the incorporation of a limited
company are initially recorded at the valuation amount recognized by the State-owned assets
supervision and administration department.
(a) Land use rights
Land use rights are amortised on the straight-line basis over their estimated useful lives of 20 -
50 years. If the purchase costs of land use rights and attached buildings cannot be reliably
allocated between the land use rights and buildings, for the purchase costs are recognised as
fixed assets.
(b) Computer software
Computer software is amortised on a straight-line basis over periods of 3 - 5 years.
(c) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review and adjustment on useful life and
amortization method are performed at each year-end.
(15) Goodwill
In the acquisition of minority interests of subsidiaries, the difference of the additional cost of
investment and the Group’s share of the fair value of the identifiable net assets in subsidiaries is
recognised as goodwill in the Group’s consolidated financial statements. Or goodwill is
recognised at the excess of the cost of a business combination involving enterprises not under
common control over the interest in the fair value of the acquirees’ identifiable net assets
acquired in the business combination as at the acquisition date.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 19 -
4 Summary of significant accounting policies and accounting estimates (continued)
(16) Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets under
operating lease and other prepayments incurred but should be borne by the current and
subsequent periods and amortised over more than one year. Long-term prepaid expenses are
amortised on the straight-line basis over the expected beneficial period and are presented at
cost net of accumulated amortisation.
(17) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment
properties measured using the cost model and long-term equity investments in subsidiaries, joint
ventures and associates are tested for impairment if there is any indication that an asset may be
impaired at the balance date. If the result of the impairment test indicates that the recoverable
amount of the asset is less than its carrying amount, a provision for impairment and an
impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to
sell and the present value of the future cash flows expected to be derived from the asset. A
provision for asset Impairment is determined and recognised on an individual asset basis. If it is
not possible to estimate the recoverable amount of an individual asset, the recoverable amount
of the group of assets to which the asset belongs is determined. A group of assets is the smallest
group of assets that is able to generate independent cash inflows.
Separately recognised goodwill is tested at least annually for impairment, irrespective of whether
there is any indication that the asset may be impaired. During the test, the carrying value of
goodwill is allocated to the related asset group or groups of asset group which is expected to
benefit from the synergies of the business combination. If the result of the test indicates that the
recoverable amount of an asset group or groups of asset group including the goodwill allocated
is lower than its carrying amount, the corresponding impairment loss is recognized. The
impairment loss is first deducted from the carrying amount of goodwill allocated to the asset
group or groups of asset group, and then deducted from the carrying amount of the remaining
assets of the asset group or groups of asset group pro rata with goodwill.
Once the asset impairment loss mentioned above is recognised, it is not allowed to be reversed
for the value recovered in the subsequent periods.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 20 -
4 Summary of significant accounting policies and accounting estimates (continued)
(18) Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed
asset that needs a substantially long period of time of acquisition and construction for its
intended use commence to be capitalised and recorded as part of the cost of the asset when
expenditures for the asset and borrowing costs have been incurred, and the activities relating to
the acquisition and construction that are necessary to prepare the asset for its intended use have
commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or
construction becomes ready for its intended use, the borrowing costs incurred thereafter are
recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended
during periods in which the acquisition or construction of a fixed asset is interrupted abnormally
and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
(19) Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred, and
subsequently stated at amortised cots using the effective interest method. Borrowings of which
the period is within one year (one year included) are classified as the short-term borrowings, and
the others are classified as long-term borrowings.
(20) Employee benefits
Employee benefits mainly include wages or salaries, bonuses, allowances and subsidies, staff
welfare, social security contributions, housing funds, labour union funds, employee education
funds and other expenditures incurred in exchange for service rendered by employees.
Employee benefits are recognised as a liability in the accounting period in which an employee
has rendered service, and as costs of assets or expenses to whichever the employee service is
attributable.
The Group has established a pension scheme for employees which is a defined contribution
plan. The Group pays contributions at 5.5% to 6% of employees’ salary into the plan. The Group
has no further obligations once the contributions have been paid. The contributions are
recognised as employee benefit expense when they are due. The pension assets are hold by a
trustee and are managed separately from the Group’s assets.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 21 -
4 Summary of significant accounting policies and accounting estimates (continued)
(21) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the
differences arising between the tax base of assets and liabilities and their carrying amount
(temporary differences). Deferred tax asset is recognized for the deductible losses that can be
carried forward to subsequent years for deduction of the taxable profit in in accordance with the
tax law. No deferred tax liability is recognised for a temporary difference arising from the initial
recognition of goodwill. No deferred tax asset or deferred tax liability is recognized for the
temporary differences resulting from the initial recognition of assets or liabilities due to a
transaction other than a business combination, which affects neither accounting profit nor
taxable profit (or deductible loss) At the balance sheet date, deferred tax assets and deferred tax
liabilities are measured at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses
and tax credits to the extent that it is probable that taxable profit will be available in the future
against which the deductible temporary differences, deductible losses and tax credits can be
utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in
subsidiaries and associates, except where the Group is able to control the timing of the reversal
of the temporary difference, and it is probable that the temporary difference will not reverse in the
foreseeable future. When it is probable that the temporary differences arising from investments
in subsidiaries and associates will be reversed in the foreseeable future and that the taxable
profit will be available in the future against which the temporary differences can be utilized, the
corresponding deferred tax assets are recognized.
Deferred tax assets and liabilities are offset when:
?The deferred taxes are relate to the same taxable entity and same taxation authority, and;
?That taxable entity has a legally enforceable right to offset current tax assets against
current tax liabilities.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 22 -
4 Summary of significant accounting policies and accounting estimates (continued)
(22) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration
received or receivable for services in the ordinary course of the Group’s activities. Revenue is
shown net of value-added tax, rebates, discounts and returns.
Revenue is recognised when the economic benefits associated with the transaction will flow to
the Group, the relevant revenue can be reliably measured and specific revenue recognition
criteria have been met for each of the Group’s activities as described below.
(a) Rendering of services
The Group provides loading/unloading, transportation, logistic agency and other related harbor
services to external customers. Revenue arising from provision of services is recognised when
services are completed and the amount of revenue and cost can be reliably measured.
(b) Transfer of asset use rights
Interest income is recognised on a time-proportion basis using the effective interest method.
Lease income from an operating lease is recognised on a straight-line basis over the period of
the lease.
(23) Deferred revenue
Deferred revenue is the advance from customers which should be amortised on a straight-line
basis over the expected beneficial period of 20 years and presented at cost net of accumulated
amortization.
(24) Leases
A finance lease is a lease that transfers substantially all the risks and rewards incidental to
ownership of an asset. An operating lease is a lease other than a finance lease.
Lease payments under an operating lease are recognised on a straight-line basis over the period
of the lease, and are either capitalized as part of the cost of related assets, or charged as an
expense for the current period.
(25) Profit distribution
Proposed profit distribution is recognised as a liability in the period in which it is approved by the
shareholders’ meeting.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 23 -
4 Summary of significant accounting policies and accounting estimates (continued)
(26) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and its
subsidiaries.
Subsidiaries are fully consolidated from the date on which the Group obtains control and are
de-consolidated from the date that such control ceases. For a subsidiary acquired in a business
combination involving enterprises under common control, it is included in the consolidated
financial statements from the date when it, together with the Company, came under common
control of the ultimate controlling party. The portion of the net profits realized before the
combination date is presented separately in the consolidated income statement.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies
and accounting period of the Company during the preparation of the consolidated financial
statements, where the accounting policies and the accounting periods are inconsistent between
the Company and subsidiaries. For subsidiaries acquired from a business combination involving
enterprises not under common control, the individual financial statements of the subsidiaries are
adjusted based on the fair value of the identifiable net assets at the acquisition date.
All significant inter-group balances, transactions and unrealised profits are eliminated in the
consolidated financial statements. The portion of a subsidiary’s equity and the portion of a
subsidiary’s net profits and losses for the period not held by the Company are recognized as
minority interests and presented separately in the consolidated balance sheet within equity and
net profits respectively.
(27) Segment reporting
The Group shall, on the basis of internal organizational structure, management requirement and
internal report system, recognize business segment, after that, confirm reporting segment
according to the business segment and disclose segment information.
Business segment refers to integral part in the Group that simultaneously meets the conditions
as follows: (1) such integral part may produce revenue and incur expense in the day-to-day
activities; (2) the management team of the Group may evaluate operating results of such integral
part periodically for the purpose of deciding resource allocation to it and evaluating its
performance; (3) the Group may obtain accounting information such as financial status,
operating results and cash flow of the integral part. If two or several business segments have
similar economic features and meet certain conditions, the Group shall consolidate them into a
single business segment.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 24 -
4 Summary of significant accounting policies and accounting estimates (continued)
(28) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the
quoted price in the active market. The fair value of a financial instrument for which the market is
not active is determined by using a valuation technique. Valuation techniques include using
recent market transactions between knowledgeable, willing parties, reference to the current fair
value of another instrument that is substantially the same with this instrument, and discounted
cash flow analysis. When a valuation technique is used to establish the fair value of a financial
instrument, use market data as much as possible and avoid use of data that is particularly
related to the Group.
Critical accounting estimates and judgments
The Group continually evaluates the critical accounting estimates and key judgements applied
based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
Except those prescribed in (note 8 (10)), the Group has no critical accounting estimates and key
assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year.
5 impact of the changes in accounting policies
Segment report
The Group showed segment information by business segment and geographic segment before 1
Jan. 2009, taking the former as the primary reporting format, as well as the latter as the
secondary reporting format respectively.
The Group, in accordance with relevant provisions concerning the enterprise improving segment
information in the Interpretation No. 3 of Accounting Standard for Business Enterprise
promulgated by the Ministry of Finance on 11 Jun. 2009, no longer differentiated between the
business segment and geographic segment and disclosed the segment information by the
primary report and the secondary report since 1 Jan. 2009, but rather shall recognize reporting
segment on the basis of business segment (such business segment shall be determined in the
light of internal organizational structure, management requirement, internal report system) and
publish segment information.
The segment report information for the first half of the year 2008 has been restated according to
the above-mentioned requirements. The change of such policy has littler influence on the
segment report of the Company, it just adjustment of format.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 25 -
6 Taxation
The types and rates of taxes applicable to the Group during the current year are set out below:
Type Tax rate Taxable basis
Enterprise income tax 16.5%、20% and
25%
Taxable income
Value added tax (“VAT”) 17% and 6% Taxable value added amount (Tax payable is
calculated using the taxable sales amount
multiplied by the effective tax rate less
deductible VAT input of current period)
Business tax 3% Taxable loading/unloading and transportation
income
5% Taxable warehousing , logistic agency and
rental income
On 16 March 2007, the National People’s Congress approved the Corporate Income Tax
(“CIT”)Law of the People’s Republic of China (the “new CIT Law”), which is effective from 1
January 2008.
The applicable enterprise income tax rate for the Company and the subsidiaries located in
Shenzhen Special Economic Zone had been 18%. Under the new CIT Law, the CIT income tax
rate applicable to the Company and these subsidiaries will increase gradually to 25% within 5
years from 2008 to 2012. The applicable income tax rate for 2009 is 20%.
The applicable enterprise income tax rate for the subsidiaries located in Dongguan city is 25%.
Chiwan Wharf Holdings (H.K.) Limited (the “WHK”) and Chiwan Shipping (H.K.) Company
Limited are subject to Hong Kong CIT income tax rate at 16.5% (2008: 16.5%).
As at 31 December 2008, several subsidiaries of the Company are still in the tax holiday of “5
year exemption and 5 year half reduction”. The details are set out below:
(a) The profit derived from berth #11 of Chiwan Container Terminal Company Limited (“CCT”) is
entitled to full exemption from income tax for five years commencing from its first profit making
year and a 50% exemption for the following five years. 2009 is the ninth profit-making year of
berth #11, CIT has been provided at a rate of 10% (2008: 9%)SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 26 -
6 Taxation (continued)
(b) The profit derived from berth #12 of CCT is entitled to full exemption from income tax for five
years commencing from its first profit making year and a 50% exemption for the following five
years. 2009 is the sixth profit-making year of berth #12, CIT has been provided at rate for 10%
(2008: Nil).
(c) The profit derived from berth #13 of CCT is entitled to full exemption from income tax for five
years commencing from its first profit making year and a 50% exemption for the following five
years when certain requirement met. 2009 is the fifth profit-making year of berth #13, but is the
second year for it to meet the requirement of related tax circular, no enterprise income tax has
been provided (2008: Nil).
7 Subsidiaries
（Ⅰ） Subsidiaries of the Company consolidated for June 30 ,2009
(1) Subsidiaries of the Company acquired under common control:
Name of subsidiaries
Place of
registration
Registered capital (in ten
thousand Yuan unless
otherwise stated)
Nature of business
and principal activities
% interest held by the
Company
Direct Indirect
Shenzhen Chiwan Harbour
Container Company Limited
Shenzhen,
PRC
10,820 Container handling
and other port
services
60% 40%
Shenzhen Chiwan Transportation
Company Limited
Shenzhen,
PRC
1500 container
transportation, vehicle
and port machinery
maintenance
75% 25%
Chiwan Container Terminal
Company Limited
Shenzhen,
PRC
USD95,300K Container handling
and other port
services
51% 4%
Shenzhen Chiwan Shipping and
Transportation Company
Limited
Shenzhen,
PRC
600 Cargo shipping 60% 40%
Chiwan Shipping (H.K.) Company
Limited
Hong
Kong, PRC
HKD800K Shipping agency
service
- 100%
The percentage of voting power held by the Group in each subsidiary is same with the
percentage of interest.
All above subsidiaries and the Company had been under common control by Nanshan Group
before and after the acquisition.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 27 -
7 Subsidiaries (continued)
（Ⅰ） Subsidiaries of the Company consolidated for June 30 ,2009 (continued)
(2) Subsidiaries of the Company rather than acquired under common control:
Name of subsidiaries
Place of
registration
Registered
capital (in ten
thousand Yuan
unless otherwise
stated)
Nature of business
and principal activities
% interest held by the
Company
Direct Indirect
Shenzhen Chiwan International
Freight Agency Company
Limited
Shenzhen,
PRC
500 Shipping agency
service
100% -
Shenzhen Chiwan Terminal
Company Limited
Shenzhen,
PRC
5,000 Port services 95% 5%
Shenzhen Chiwan Trains-Grains
Terminal Company Limited
Shenzhen,
PRC
4,500 Warehousing of
grains
75% 25%
Chiwan Wharf Holdings (H.K.)
Limited
Hong
Kong SAR,
PRC
HKD1,000K Shipping agency
service
100% -
Dongguan Chiwan Wharf Compan
Limited
Dongguan,
PRC
26,130 Port services,
warehousing and
other logistic services
25% 75%
Dongguan Chiwan Terminal
Company Limited (a)
Dongguan,
PRC
30,000 Port services,
warehousing and
other logistic services
25% 75%
Grossalan Investments Limited British
Virgin
Islands
USD 1 Investment holding - 100%
The percentage of voting power held by the Group in each subsidiary is same with the
percentage of interest.
All above subsidiaries are consolidated by the Group.
(a) In March 2008, as approved by Dongguan Bureau of Foreign Trade & Economic Cooperation
with document DWJMZ(2008)714, Dongguan Chiwan Terminal Company Limited (the “DGCHT”)
was established in Dongguan city by the Company and WHK, with registered capital of RMB
300,000,000. As at 31 December 2008, the paid-in capital was RMB 90,000,000 which has been
verified by a CPA firm and the remaining capital is to be paid in next two years according to the
Articles of Association of DGCHT.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 28 -
7 Subsidiaries (continued)
（Ⅱ） Subsidiaries of the Company unconsolidated for June 30 ,2009 (continued)
Name of subsidiaries
Place of
registration
Registered
capital (in ten
thousand Yuan
unless
otherwise
stated)
Nature of business
and principal activities
% interest held by the
Company
Direct Indirect
Shenzhen Chiwan Oriental
Logistics Company
Limited(a)
Shenzhen,
PRC
1,000 Warehousing, cargo
transportation and
delivering
50% 50%
(a) On 5 June 2009, The Company transferred all equities of Shenzhen Chiwan Oriental Logistics
Co., Ltd. to CND (Group) Co., Ltd. (Note8(42)(d)&Note14).
8 Notes to the consolidated financial statements
(1) Cash at bank and at hand
30 June 2009 31 December 2008
Cash on hand 33,900 17,859
Cash at bank 592,725,383 640,303,328
Other cash balances 1,446,172 1,154,723
594,205,455 641,475,910
The foreign currency portfolio in cash and bank balances is as follows:
30 June 2009 31 December 2008
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
USD 1,659,868 6.83 11,336,898 3,065,767 6.83 20,939,189
HKD 138,796,597 0.88 122,141,005 132,860,322 0.88 116,917,083
133,477,903 137,856,272
(2) Notes receivable
30 June 2009 31 December 2008
Bank acceptance notes - 7,846,264SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 29 -
8 Notes to the consolidated financial statements (continued)
(3) Accounts receivable and other receivables
(a) Accounts receivable
31 December 2008 30 June 2009
Accounts receivable 148,452,206 203,019,022
Current year
additions
Current year
reversals
Less: provision for bad debts (2,776,326) - 651,536 (2,124,790)
145,675,880 200,894,232
The ageing of accounts receivable and related provisions for bad debts are analysed below:
30 June 2009 31 December 2008
Amount
% of total
balance
Provision for
bad debts Amount
% of total
balance
Provision for
bad debts
Within 1 year 200,777,135 98.8% - 148,077,829 99.7% (2,519,048)
1 to 2 years 2,064,084 1.0% (2,064,084) 288,525 0.2% (205,767)
2 to 3 years 91,951 0.1% (9,195) - - -
Over 3 year 85,852 0.1% (51,511) 85,852 0.1% (51,511)
203,019,022 100% (2,124,790) 148,452,206 100% (2,776,326)
Accounts receivable are analysed by customer’s categories as follows:
30 June 2009 31 December 2008
Amount
% of total
balance
Provision
for bad
debts
% of
balance Amount
% of total
balance
Provision
for bad
debts
% of
balance
Receivables that
are individually
significant 139,855,378 68.9% - - 94,253,056 63.5% - -
Others 63,163,644 31.1% (2,124,790) 3.4% 54,199,150 36.5% (2,776,326) 5.1%
203,019,022 100% (2,124,790) 1.0% 148,452,206 100% (2,776,326) 1.9%
The management classified the five largest accounts receivable as “receivables that are
individually significant”. All these accounts receivable are aged within one year and the
management is of view that no provision should be made for these balances.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 30 -
8 Notes to the consolidated financial statements (continued)
(3) Accounts receivable and other receivables (continued)
(a) Accounts receivable (continued)
As at 30 June 2009, amounts of RMB 2,064,084 due by a shipping company was included in
accounts aged in one to two years. That shipping company was in dormant and involved in
several litigations. Its bank accounts have also been controlled. The management considered
the recoverability of such accounts receivable is remote and therefore 100% provision for bad
debt was provided for them
As At 30 June 2009, no balances included in above accounts receivable are due from the
shareholders of the Company who hold over 5% shares with voting rights (31 December
2008:Nil).
As at 30 June 2009, the Group’s five largest accounts receivable balances all aged within one
year and their aggregate amount was RMB 139,855,378 (31 December 2008: RMB 94,253,056),
being 69% (31 December 2008: 64%) of the total accounts receivable balances.
The following balances are denominated in foreign currencies:
30 June 2009 31 December 2008
Original currency
Exchange
rate RMB equivalent Original currency
Exchange
rate RMB equivalent
USD 278,765 6.83 1,903,965 306,945 6.83 2,096,434
HKD 1,326,387 0.88 1,167,221 1,795,127 0.88 1,579,712
3,071,186 3,676,146
(b) Other receivables
31 December 2008 30 June 2009
Amount due from third parties 7,424,116 10,955,045
Staff advances 2,493,218 1,909,009
Deposits 2,240,832 2,285,832
Others 59,921 -
12,218,087 15,149,886
Current year
additions
Current year
reversals
Less: Provision for bad debts (2,037,388) - - (2,037,388)
10,180,699 13,112,498SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 31 -
8 Notes to the consolidated financial statements (continued)
(3) Accounts receivable and other receivables (continued)
(b) Other receivables (continued)
The aging of other receivable and the related bad debts provision are analysed below:
30 June 2009 31 December 2008
Amount
% of total
balance
Provision for
bad debts Amount
% of total
balance
Provision for
bad debts
Within 1 year 12,494,289 82.5% - 8,053,015 65.9% -
1 to 2 years 116,939 0.8% (7,585) 1,667,423 13.6% (15,190)
2 to 3 years 507,453 3.3% (137,023) 874,741 7.2% (567,368)
Over 3 years 2,031,205 13.4% (1,892,780) 1,622,908 13.3% (1,454,830)
15,149,886 100% (2,037,388) 12,218,087 100% (2,037,388)
Other receivables are analysed by customer’s categories as follows:
30 June 2009 31 December 2008
Amount
% of total
balance
Provision for
bad debts
% of
balance Amount
% of total
balance
Provision for
bad debts
% of
balance
Receivables that are
individually significant 6,120,246 40.4% (1,551,780) 25.4% 4,935,668 40.4% (1,177,838) 23.9%
Others 9,029,640 59.6% (485,608) 5.4% 7,282,419 59.6% (859,550) 11.8%
15,149,886 100% (2,037,388) 13.4% 12,218,087 100% (2,037,388) 16.7%
The management classified the five largest other receivables as “receivables that are individually
significant”.
As at 30 June 2009, the Group did not have any balances which were due from parties holding
having 5% or above shares in the Company (31 December 2008: Nil).
As at 30 June 2009, the Group’s five largest other receivable balances were all aged within one
year, and their aggregate amount was RMB 6,120,246 (31 December 2008: RMB 4,935,668),
being 40% (31 December 2008: 40%) of the total accounts receivable balances.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 32 -
8 Notes to the consolidated financial statements (continued)
(3) Accounts receivable and other receivables (continued)
(b) Other receivables (continued)
The following balances are denominated in foreign currencies:
30 June 2009 31 December 2008
Original currency
Exchange
rate RMB equivalent
Original
currency
Exchange
rate RMB equivalent
USD - 6.83 - 13,616 6.83 92,997
HKD 267,956 0.88 235,801 77,476 0.88 68,179
235,801 161,176
(4) Advance to suppliers
30 June 2009 31 December 2008
Aging Amount
% of total
balance Amount
% of total
balance
Within 1 year 13,287,117 100% 10,336,323 100%
As at 30 June 2009, the Group did not have any balances which were due to parties having 5%
or above shareholdings in the Company (31 December 2008: Nil).
No balances of advance to suppliers were denominated in foreign currencies (31 December
2008: Nil).
(5) Inventories
30 June 2009 31 December 2008
Cost -
Spare parts 29,087,933 28,730,787
Fuel 1,158,881 1,759,915
Low cost consumables 64,505 73,669
30,311,319 30,564,371
Less: Provision for declines in the value of inventories -
Spare parts (2,756,073) (2,756,073)
27,555,246 27,808,298SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 33 -
8 Notes to the consolidated financial statements (continued)
(6) Available-for-sale financial assets
31 December
2008
Current year fair
value movement
30 June 2009
Available-for-sale equity instruments 5,440,000 910,000 6,350,000
Available-for-sale financial asset represented 1,000,000 PRC legal person shares of Jiangsu
Expressway (the “Jiangsu Expressway”) held by the Company. For the six months ended 30
June 2009, the market value of the stocks in Shanghai Stock Exchange increased RMB910,000.
(7) Long term receivables
31 December
2008
Effect of foreign
exchange rate
30 June 2009
Media Port Investments Limited 184,039,141 - 184,039,141
On 30 September 2002, China Merchants Holdings (International) Company Limited (the
“CMHI”, a listed company in Hong Kong) and Shenzhen South Oil (Group) Company Limited (the
“SSOG”) entered into an agreement called the “Agreement on Cooperation and Development of
Mawan Port” (the “Development Agreement”) to incorporate three joint ventures to construct and
operate the berth 0#, 5#, 6#, 7# and 8# in Mawan Port.
According to the Development Agreement, CMHI and the Group will incorporate an associated
company (Note 8 (8)) Media Port Investments Limited (the “MPIL”) first with equal percentage of
equity held respectively. MPIL then incorporates the abovementioned three joint ventures
together with SSOG, at 60% and 40% equity interest therein respectively. The total investment
by the shareholders in these three Mawan joint ventures amounts to RMB 1,200,000,000.
In 2003, according to the arrangement under the Development Agreement, WHK, a subsidiary of
the Company, provided an interest free shareholder’s loan of HKD 169,815,000 to MPIL, and
MPIL then injected the amount to the three Mawan companies as their paid-in capital. In 2006,
the interest free shareholder’s loan was increased by HKD 39,320,388 and the increment was
paid to the three companies by MPIL as paid-in capital. As at 30 June 2009, the RMB equivalent
of the shareholder’s loan amounted to RMB 184,039,141 (2008: RMB 184,039,141). The above
long-term receivable is part of the substantial investment to associates and the exchange
differences arising in current year was recorded in “Equity – Translation differences of foreign
currency financial statements”.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 34 -
8 Notes to the consolidated financial statements (continued)
(7) Long term receivables(continued)
The total investments by exceeding these three companies over their paid-in capital have been
financed by bank loans. As at 30 June 2009, the total paid-in capital of these three Mawan
companies was RMB 735,000,000.
The shareholder’s loans to MPIL are unsecured, interest-free and have no fixed term of
repayment. The Group has confirmed that it will not call for repayment of the loans within one
year from balance sheet date.
(8) Long-term equity investments
30 June 2009 31 December 2008
Associates (a) 290,862,933 268,934,883
Other long-term equity investments (b) 17,037,500 17,037,500
307,900,433 285,972,383
Less: Provision for impairment of
long-term equity investments (c) (3,128,300) (3,128,300)
304,772,133 282,844,083
As at 30 June 2009, the long-term equity investments of the Group were not subject to restriction
on disposal or remittance of return on investments.
(a) Associates
Investment in associates is set out below:
Original
investment
cost
31 December
2008
Additional
investment in
current year
Share of
profit of
associates
Cash
dividends by
associates
30 June 2009
Shenzhen Cyber-harbour
Network Co., Ltd 1,875,000 13,374,530 - 1,485,854 (3,750,000) 11,110,384
China Merchants Maritime
& Logistics (Shenzhen)
Ltd. 160,000,000 141,532,247 - (4,634,076) - 136,898,171
MPIL* 139,932 114,028,106 - 28,826,272 - 142,854,378
162,014,932 268,934,883 - 25,678,050 (3,750,000) 290,862,933SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 35 -
8 Notes to the consolidated financial statements (continued)
(8) Long-term equity investments (continued)
(a) Associate(continued)
* The Company held 50% equity in MPIL, but has no conjunct right of control. Thus MPIL was
treated as an associate of the Company. As stated in Note 8(7), the Company held 30% equity
of the three Mawan Companies through MPIL.
The particular of the associates are set out as below:
30 June 2009 For the six months wnded 30 June 2009
Place of registration
Nature of
business
Registered
capital
interest
held
voting right
held Total assets Total liabilities Revenue Net profit/(loss)
Shenzhen
Cyber-harbour
Network Co., Ltd Shenzhen,PRC
Computer net
services
RMB
5 million 37.5% 37.5% 36,697,915 8,063,539 18,802,940 3,962,277
China Merchants
Maritime &
Logistics
(Shenzhen) Ltd. Shenzhen, PRC Warehousing
RMB 400
million 40% 40% 1,244,211,419 901,965,990 47,654,356 (11,585,189)
MPIL British Virgin Islands Investing USD 10 50% 50% HKD481,122,666 HKD418,318,899 - HKD(1,297)
All above summary financial information of associates are extracted from their management
accounts. The Group has applied the accounting policy of the Group to the results of the
associates in equity accounting of the share of results of the associates.
(b) Other long-term equity investment
Name of investees 31 December 2008 & 30 June 2009
China Ocean Shipping Agency (Shenzhen) Company Limited 13,510,000
Shenzhen Petro-chemical Industry (Group) Company Limited. 3,500,000
Guangdong Guang Jian Group Company Limited 27,500
17,037,500
(c) Provision for impairment of long-term equity investments
31 December 2008 Movement in current year 30 June 2009
Other long-term equity investment
-Shenzhen Petro-chemical Industry (Group) Company
Limited (3,117,800) - (3,117,800)
-Guangdong Guang Jian Group Company Limited (10,500) - (10,500)
(3,128,300) - (3,128,300)SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 36 -
8 Notes to the consolidated financial statements (continued)
(9) Investment property
Buildings Land use rights Total
Cost
31 December 2008 12,793,313 31,508,965 44,302,278
Current year additions - - -
30 June 2009 12,793,313 31,508,965 44,302,278
Accumulative depreciation/
amortisation
31 December 2008 3,435,814 11,817,511 15,253,325
Current year depreciation 136,891 306,883 443,774
30 June 2009 3,572,705 12,124,394 15,697,099
Net book value
30 June 2009 9,220,608 19,384,571 28,605,179
31 December 2008 9,357,499 19,691,454 29,048,953
(10) Fixed assets
Harbor facilities
warehouses,
container yards
and buildings
machinery and
equipments
motor vehicles,
cargo ships
and tugboats
other
equipments Total
Cost
31 December 2008 944,565,567 498,768,353 1,744,760,891 313,065,308 79,442,299 3,580,602,418
Transfer from construction in
progress - 2,629,814 168,540 - - 2,798,354
Other current year additions 703,400 - 6,446,000 2,423,203 197,213 9,769,816
Current year disposals - (772,507) (2,356,911) (11,955,334) (1,144,096) (16,228,848)
30 June 2009 945,268,967 500,625,660 1,749,018,520 303,533,177 78,495,416 3,576,941,740
Accumulated depreciation
31 December 2008 187,128,128 159,000,382 732,726,072 127,091,756 51,922,004 1,257,868,342
Current year depreciation 8,572,815 9,793,838 49,204,255 13,033,161 6,230,791 86,834,860
Current year disposals - (471,292) (1,994,903) (10,762,012) (773,580) (14,001,787)
30 June 2009 195,700,943 168,322,928 779,935,424 129,362,905 57,379,215 1,330,701,415
Provision for impairment loss
31 December 2008
And 30 June 2009 (a) - 60,695,381 - 157,335 - 60,852,716
Net book value
30 June 2009 749,568,024 271,607,351 969,083,096 174,012,937 21,116,201 2,185,387,609
31 December 2008 757,437,439 279,072,590 1,012,034,819 185,816,217 27,520,295 2,261,881,360SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 37 -
8 Notes to the consolidated financial statements (continued)
(10) Fixed assets (continued)
(a) In 2007, the Group planned to relocate part of the general cargo business and facilities to
Dongguan Machong Port, and made certain impairment provision of certain demolition for
related warehouses, container yards and buildings accordingly. As at 30 June 2009, the
management of the Group considered that impairment provision against the fixed assets were
sufficient.
As at 30 June 2009, buildings, machinery and equipment with a net book value of approximately
RMB 2,771,898 (Cost: RMB 32,831,967) were idle.
At 30 June 2009, the buildings and equipments with carrying amounts of approximately RMB
45,302,811 and cost of RMB 453,028,110 were fully depreciated but still in use (31 December
2008: carrying amounts: RMB 35,399,058; cost: RMB 353,990,575).
As at 30 June 2009, ownership certificates of buildings (“Buildings ownership Certificates”) for
certain buildings of the Group with carrying amounts of approximately RMB 28,272,299 (cost:
RMB 53,604,354) had not yet been obtained by the Group because the official certificates of
the lands on which these buildings located had not been obtained (Note 8(12)).
For the six months ended 30 June 2009, depreciation expenses of RMB 81,960,395
(Jan.-Jun.2008: RMB 85,697,359) and RMB 4,874,465 (Jan.-Jun.2008: RMB 5,207,660) were
charged to cost of revenue and general and administrative expenses, respectively.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 38 -
8 Notes to the consolidated financial statements (continued)
(11) Construction in progress
Name of projects Budget
31 December
2008
Current year
additions
Transfer to fixed
assets during the
current year
Other
reduction 30 June 2009 Sources of fund
Percentage of
completion
Land formation and dredging projects for
berth 2# - 3# at Machong Port 204,758,600 167,229,133 12,694,518 179,923,651 Self Funding 87.9%
Berth 2# and 3#, Machong Port 448,793,200 104,334,331 22,826,821 127,161,152 Loan 28.3%
Converting diesel-powered RTG engines
into electric ones 67,000,000 101,888 23,366,260 23,468,148 Self Funding 35.0%
MQ2535/4025 RTGs 61,500,000 13,500,000 6,687,000 20,187,000 Self Funding 32.8%
Berth 4# - 5#, Machong Port 10,580,000 3,613,592 - 3,613,592 Self Funding 34.2%
Center for handling documents 3,120,349 1,472,394 1,157,420 (2,629,814) - Self Funding -
Others - 11,096,726 918,453 (168,540) 11,846,639 Self Funding -
301,348,064 67,650,472 (2,798,354) 366,200,182
Borrowing costs for the related construction for berth 2# - 5# at Machong Port of RMB 346,478 were capitalized during the year at an average interest
rate of 4.78% (2008: 5.02% - 6.72%).SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 39 -
8 Notes to the consolidated financial statements (continued)
(12) Intangible assets
Original cost
31 December
2008
Current year
additions
Current year
reductions
Current year
amortization 30 June 2009
Accumulative
amortization
Land use rights – prepaid
under lease (a) 1,419,159,549 1,054,401,763 - - (17,595,069) 1,036,806,694 (382,352,855)
Land use rights– purchased 53,044,889 18,666,177 33,701,700 - (685,240) 51,682,637 (1,362,252)
Computer software 18,595,657 2,043,128 307,000 - (418,111) 1,932,017 (16,663,640)
1,490,800,095 1,075,111,068 34,008,700 - (18,698,420) 1,090,421,348 (400,378,747)
As at 30 June 2009, there was no need to make any impairment provision against the intangible assets of the Group.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 40 -
8 Notes to the consolidated financial statements (continued)
(12) Intangible assets (continued)
The land use rights of the Group were mainly composed of:
(a) Group has leased from Nanshan Group several plots of land with a total area of 752,699 sq.
meters within Chiwan port for a lease term of 20 - 50 years with up-front payments of RMB
684,453,783 made. The lands were injected by Shenzhen Investment Holding Corporation in 1982
as part of the consideration in acquiring the equity interests of Nanshan Group. As the PRC laws
prevailing at that time did not provide for a mechanism for the issuance of official certificates of the
land use rights, Nanshan Group has not obtained the land use right certificates of the leased land
so far.
In June 2003 and September 2004, CCT entered into a land use agreement with Nanshan Group
and leased two plots of land, one with an area of 117,827.2 square meters for 40.5 years and the
other with an area of 171,089.478 square meters for 39 years, at the consideration of RMB
271,002,558 and RMB 444,832,643 respectively. Also no official certificates for such lands were
obtained by Nanshan Group.
Nanshan Group issued irrevocable and unconditional letters of indemnity to the Group in March
2001, June 2003 and September 2004, undertaking to indemnify the Group against any losses
arising from or in connection with the leased land use rights.
The directors of the Company therefore considered there was no impairment risk nor any
contingent liabilities related to the above assets.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 41 -
8 Notes to the consolidated financial statements (continued)
(13) Goodwill
31 December 2008 &
30 June 2009
CCT 10,858,898
The goodwill arose from the acquisition of the minority interests in CCT, being the difference of the
additional cost of investment and the Group’s share of the fair value of the identifiable net assets in
CCT.
Goodwill is tested for impairment annually. As at 30 June 2009, the recoverable amount of the
asset group with goodwill was higher than its carrying value, the Group therefore assessed that
there was no need for any impairment against the goodwill.
(14) Long-term prepaid expenses
30 June 2009 31 December 2008
Construction expenditure of Tonggu sea-route (a) 61,793,143 62,715,428
Improvement to fixed assets under operating leases 2,888,769 2,938,364
Qianhai yard 2,696,791 -
Golf membership 576,529 700,164
Building decoration 178,355 365,675
Others 613,333 905,660
68,746,920 67,625,291SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 42 -
8 Notes to the consolidated financial statements (continued)
(14) Long-term prepaid expenses(continued)
(a) In 2007, the Shenzhen municipal government commenced the construction work of the public sea
route connecting Tonggu sea route, Shekou port area, Chiwan port area, Mawan prot area,
Qianhaiwan port area and Dachanwan port area (“Tonggu Sea Route”). As required by a decision
by the government, 60% of construction expenditure would be allocated to the port operators while
the remaing 40% born by the government. The port operators in Western Shenzhen port areas
were allocated 35% of the total expenditure, and subsequently agreed the portion to each operator,
taking into accounts of the factors including the function, waterfront length, berthing ship of each
porter etc. The total expenditure of RMB 64,560,000 were allocated to the Group and accounted
for as Long term prepaid expenses, being amortized on a straight line basis over 35 years which is
the expected useful live of Tonggu Sea Route starting from 2008 when the Tonggu Sea Route was
ready for use.
(15) Long-term prepayment
In March 2006, the Company entered into the agreement of “Frame contract for cooperation on
usage of quay and land for berth 2# & 5# at Machong Port in Dongguan” with Dongguan Humen
Port Administration Commission to purchase a land with an area of 800,000 square meters and
area of water with depth of 700 meters from the front of terminal, together with the use right of
1,200 meters coast line, for berth 2# to berth 5# in Dongguan Machong Port at a consideration of
RMB 260,000,000. Up to 30 June 2009, the Company has paid the first three instalments of the
consideration. As parts of land and water area have not been made available for use by the
Company, the relevant payments were therefore recognized as Long-term prepayment.
(16) Provision for impairment of assets
31 December Current year reduction
2008
Current year
addition Reverse Utilized
30 June 2009
Bad debt provisions (Note 8(3)) 4,813,714 - (651,536) - 4,162,178
Provision for declines in the value
of inventories (Note 8(5)) 2,756,073 - -
- 2,756,073
Provision for impairment of
long-term equity investments
(Note 8(8)) 3,128,300 - -
- 3,128,300
Provision for impairment of fixed
assets (Note 8(10)) 60,852,716 - -
- 60,852,716
71,550,803 - (651,536) - 70,899,267SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 43 -
8 Notes to the consolidated financial statements (continued)
(17) Short-term borrowings
30 June 2009 31 December 2008
Bank loans - unsecured 627,440,000 829,840,000
The weighted average interest rate of the short-term borrowings in 2009 was 2.55% per annum
(2008: 4.27%). The currency of listed load is all Hong Kong dollar .As at 30 June 2009, the
balance of short-term bank loan was HKD 713,000,000.
(18) Notes payable
30 June 2009 31 December 2008
Bank acceptance notes 2,610,870 8,681,000
(19) Accounts payable
As at 30 June 2009, except for the amount due to Nanshan Group (Note 10(4)), the Group did not
have any other balances which were due to parties having 5% or above shareholdings in the
Company.
As at 30 June 2009, accounts payable with aging over 1 year amounting to RMB5,876,559 (31
December 2008: RMB3,761,241) were mainly payable for construction and project management
services. As the related construction projects have not been completed yet, the accounts have not
been settled.
The following balances are denominated in foreign currency:
30 June 2009 31 December 2008
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
USD 263,264 6.83 1,798,093 262,624 6.83 1,793,722
HKD 669,902 0.88 589,514 91,365 0.88 80,401
2,387,607 1,874,123
(20) Advances from customers
As at 30 June 2009, the advances from customers all aged within 1 year, and the Group did not
have any balances which were due to parties having 5% or above shareholdings in the Company.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 44 -
8 Notes to the consolidated financial statements (continued)
(21) Employee benefits payable
31 December
2008
Current year
additions
Current year
reductions 30 June 2009
Wages and salaries, bonuses, allowances
and subsidies 33,232,452 52,701,279 (69,794,755) 16,138,976
Staff welfare - 3,613,315 (3,613,315) -
Social security contributions 23 8,529,589 (8,526,061) 3,551
Defined contribution plan 1,940 3,439,470 (3,372,208) 69,202
Housing funds - 5,662,755 (5,662,755) -
Labor union and employee education funds 6,046,994 2,950,455 (1,465,328) 7,532,121
Others 5,350 - (5,350) -
39,286,759 76,896,863 (92,439,772) 23,743,850
On 3 June 2008, the Group participated a group defined contribution plan of Nanshan Group
approved by Shenzhen government. The above pension contributions were paid into the plan
through Nanshan Group.
(22) Dividends payable
30 June 2009 31 December 2008
International Enterprise Co., Ltd. 145,878,767 150,758,786
Hidoney Developments Co., Ltd. 110,672,662 120,607,029
Public A share 47,032,700 -
Public B share 89,947,715 -
NanShan Group 185,401,450 -
578,933,294 271,365,815
As at 30 June 2009, the balances were payable to the minority shareholders of CCT, one of
subsidiary of the companies and the company, being dividends declare for 2008.
(23) Taxes payable
30 June 2009 31 December 2008
Enterprise income tax payable 13,042,621 19,652,512
Withholding tax payable - 3,356,435
Value-added-tax payable 91,183 205,464
Business tax payable 2,614,893 3,640,655
Others 1,320,589 1,030,365
17,069,286 27,885,431SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 45 -
8 Notes to the consolidated financial statements (continued)
(24) Other payables
30 June 2009 31 December 2008
Refunds of Harbor Construction Fee (a) 60,253,349 47,489,659
Security expense payable
11,736,039 11,491,195
Relocation compensation for subway (b)
10,442,469 10,616,709
Temporary receipts 4,021,988 9,272,222
Temporary receipts of fixed assets
disposal - 7,670,000
Deposits received 3,597,536 2,682,085
Payable for security system - 2,424,860
Audit fee payable - 1,650,000
Rental payable 2,216,667 1,490,000
Due to employees 3,739,679 1,469,110
Service fees 218,789 392,432
Due to Nanshan Group (Note10(4)) 351 7,215
Others 13,494,964 7,980,333
109,721,831 104,635,820
(a) The amount was refunds of Port Construction Fee received by the Company and CCT from
Shenzhen Communication Bureau. According to the related circular “Port construction fee
supervising method“ issued by the Ministry of Finance, the use of the refunds should be controlled
strictly and separately for port facility construction.
(b) The amount was unutilised compensation awarded by Shenzhen Nanshan District government
through Nanshan Group pursuant to document SNDTCZ[2008]008# for stacking yards relocation
due to municipal railway construction. The balances will be used to offset the expenses occurred in
the future stacking yards relocation.
As at 30 June 2009, except for the amount due to Nanshan Group, the Group did not have any
other payables which were due to parties having 5% or above shareholdings in the Company.
As at 30 June 2009, other payables with aging over 1 year is Nill (2008: RMB 2,424,860).
The following balances are dominated in foreign currency：
30 June 2009 31 December 2008
Original
currency
Exchange
rate RMB equivalent
Original
currency
Exchange
rate RMB equivalent
USD 107,836 6.83 736,520 25,835 6.83 176,453
HKD 694,851 0.88 611,469 197,270 0.88 173,598
1,347,989 350,051SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 46 -
8 Notes to the consolidated financial statements (continued)
(25) Deferred revenue
31 December 2008
- the portion of current liabilities 4,951,750
- the portion of non-current liabilities 69,737,144
74,688,894
Current year reduction (2,475,875)
Less: the portion of current liabilities (4,951,750)
30 June 2009 67,261,269
Residual useful years 14-15 years
Deferred revenue is amortised on a straight-line basis over the expected beneficial period of 20
years and is presented at cost net of accumulated amortisation.
(26) Long-term borrowings
30 June 2009 31 December 2008
Bank borrowings(a) - unsecured 404,800,000 404,800,000
Others (Note 10(3)) - -
404,800,000 404,800,000
Less: current portion of long-term
borrowings
- -
404,800,000 404,800,000
Long-term borrowings are analysed by banks as follows:
30 June 2009 31 December 2008
Nanyang Commercial Bank 404,800,000 404,800,000
404,800,000 404,800,000
Long-term borrowings are repayable as follows:
30 June 2009 31 December 2008
Within 1 year
- -
1 to 2 years
404,800,000 404,800,000
404,800,000 404,800,000SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 47 -
8 Notes to the consolidated financial statements (continued)
(26) Long-term borrowing(continued)
The weighted average interest rate of the long-term borrowings in 2009 was 2.03% per annum.
(2008: 4.99%)
(a) Bank borrowings - unsecured
As at the 30 June 2009 included, the balance of bank borrowings was HKD460,000,000 from
Nanyang Commercial bank, and was repayable within 2 years. Bank borrowing HKD230,000,000
by Chiwan Wharf Holding (H.K.) Limited was secured by a standby letter of credit of HKD
230,000,000 issuer by China Minsheng Bank Corp. Ltd.; on the application by the Company was
guaranted 55% of bank borrowing of HKD 80,000,000 (HKD 44,000,000) obtained by CCT was
guaranted by the Company.
(b) Undrawn committed borrowing facilities
The Group has the following undrawn committed borrowing facilities as at 30 June 2009:
Expiring within 1 year 3,249,390,000
Expiring in 1 to 2 years 850,000,000
Expiring in 2 to 3 years 573,600,000
Expiring more than 3 years -
4,672,990,000
As most of the bank borrowings as at 30 June 2009 were repayable within the next 12 months, the
Group had net current liabilities of RMB569,031,553. The directors of the Company are confident
that the Group can roll over the current borrowings and has sufficient bank borrowing facilities and
other financial resources to repay bank borrowings when they fall due. Therefore, the financial
statements of the Group are prepared on going concern basis.
(27) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets
30 June 2009 31 December 2008
Deferred tax assets
Deductible temporary
difference Deferred tax assets
Deductible
temporary difference
Provision for asset
impairment 15,011,383 65,509,095 15,011,383 65,509,095
Annual bonus and long-term
bonus for motivation 3,213,108 20,019,857 5,679,957 32,354,102
Depreciation of fixed assets 8,343,784 34,700,933 8,343,784 34,700,933
Compensation for Pingnan
railway 2,605,302 13,026,510 3,473,736 17,368,682
Others 624,546 3,122,730 471,245 2,356,225
29,798,123 136,379,125 32,980,105 152,289,037SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 48 -
8 Notes to the consolidated financial statements (continued)
(27) Deferred tax assets and deferred tax liabilities(continued)
(b) Deferred tax liabilities
30 June 2009 31 December 2008
Deferred tax
liabilities
Taxable temporary
difference
Deferred tax
liabilities
Taxable temporary
difference
Change in fair value of
available for sale financial
instruments 1,046,000 5,230,000 864,000 4,320,000
1,046,000 5,230,000 864,000 4,320,000
(28) Share capital
31 December 2008
Current year
addition
Current year
reduction 30 June 2009
Shares with restriction on
disposal:
State and PRC legal person
shares (Note 1) 324,316,070 - (324,316,070) -
Shares held by senior
management 292,842 - - 292,842
Including: PRC public
shares 78,495 - - 78,495
Including: Domestically
listed foreign shares 214,347 - - 214,347
Total of shares with
restriction on disposals 324,608,912 - (324,316,070) 292,842
Shares without restriction on
disposals:
PRC public shares 140,473,735 324,316,070 - 464,789,805
Domestically listed foreign
shares 179,681,083 - - 179,681,083
Total of shares without
restriction on disposals 320,154,818 324,316,070 - 644,470,888
Total 644,763,730 324,316,070 (324,316,070) 644,763,730SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 49 -
8 Notes to the consolidated financial statements (continued)
(28) Share capital(continued)
31 December 2007
Current year
addition
Current year
reduction 31 December 2008
Shares with restriction on
disposal:
State and PRC legal person
shares (Note 1) 347,559,485 - (23,243,415) 324,316,070
Shares held by senior
management 178,217 133,169 (18,544) 292,842
Including: PRC public
shares 97,039 - (18,544) 78,495
Including: Domestically
listed foreign shares 81,178 133,169 - 214,347
Total of shares with
restriction on disposals 347,737,702 133,169 (23,261,959) 324,608,912
Shares without restriction on
disposals:
PRC public shares 117,211,776 23,261,959 - 140,473,735
Domestically listed foreign
shares 179,814,252 - (133,169) 179,681,083
Total of shares without
restriction on disposals 297,026,028 23,261,959 (133,169) 320,154,818
Total 644,763,730 23,395,128 (23,395,128) 644,763,730SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 50 -
8 Notes to the consolidated financial statements (continued)
(29) Capital surplus
31 December 2008
Current year
addition
Current year
reduction 30 June 2009
Capital premium 142,786,083 - - 142,786,083
Other capital surplus
Change in fair value of
available-for-sale financial assets
-Total (Note 8(7)) 4,320,000 910,000 - 5,230,000
-Deferred tax liabilities(Note
8(27)) (864,000) -
(182,000)
(1,046,000)
Change in fair value of hedging
instrument of CCT (a)
-Total - - - -
-Deferred tax liabilities - - - -
Transfer from the balance of capital
surplus recognised under previous
accounting system (b) (2,781,133) -
-
(2,781,133)
Others 709,605 - - 709,605
144,170,555 910,000 (182,000) 144,895,555
31 December 2007
Current year
addition
Current year
reduction 31 December 2008
Capital premium 142,786,083 - - 142,786,083
Other capital surplus
Change in fair value of
available-for-sale financial assets
-Total (Note 8(7)) 9,400,000 - (5,080,000) 4,320,000
-Deferred tax liabilities(Note
8(27)) (1,692,000) -
828,000
(864,000)
Change in fair value of hedging
instrument of CCT (a)
-Total 21,702,541 - (21,702,541) -
-Deferred tax liabilities (1,514,837) - 1,514,837 -
Transfer from the balance of capital
surplus recognised under previous
accounting system (b) (2,781,133) -
-
(2,781,133)
Others 676,556 - 33,049 709,605
168,577,210 - (24,406,655) 144,170,555SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 51 -
8 Notes to the consolidated financial statements (continued)
(29) Capital surplus (continued)
(a) The fair value change of the hedge instrument of CCT (Note 8(6)) and the deferred tax liabilities
(Note 8(27)) were recognized in capital surplus by the Group in the proportion of 55%, the
proportion of equity interest in CCT held by the Group.
(b) Balances of capital surplus recognized under previous accounting system mainly include:
- During 2003 to 2005, the Group provided shareholder’s loan of RMB 100,000,000 to Mawan
companies. According to related circular CK(2001)64 regarding accounting treatment of sales
of assets between related parties issued by the Ministry of Finance, that part of interest
received that exceeded the market interest rate of RMB 7,124,745 was recorded in capital
surplus.
- On 1 January 2006, CCT changed its recording currency from Hong Kong dollar to Renminbi
yuan. According to the relevant PRC regulations, the exchange differences arising from
translation of foreign capital and other equity accounts are recorded in capital surplus. The
Group debited the portion of CCT’s capital and other equity accounts of RMB 10,086,842,
calculated based on the proportion of equity interest the Group held in CCT, to capital surplus.
(30) Surplus reserve
31 December 2008
Current year
additions
Current year
reductions
30 June 2009
Statutory surplus reserve 355,134,736 - - 355,134,736
Discretionary surplus reserve - - - -
355,134,736 - - 355,134,736
31 December 2007
Current year
additions
Current year
reductions
31 December 2008
Statutory surplus reserve 394,710,655 142,010,813 (181,586,732) 355,134,736
Discretionary surplus reserve 699,406,238 - (699,406,238) -
1,094,116,893 142,010,813 (880,992,970) 355,134,736SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 52 -
8 Notes to the consolidated financial statements (continued)
(30) Surplus reserve(continued)
In accordance with the Company Law and the Company’s Articles of Association, the Company
should appropriate 10% of net profit for the year to the statutory surplus reserve, the Company can
cease appropriation when the statutory surplus reserve accumulated to more than 50% of the paid
in capital. The statutory surplus reserve can be used to make up for the loss or increase the paid in
capital after approval.
The Company appropriates discretionary surplus reserve after shareholders’ meeting approves
the Board of Director’s proposal. The discretionary surplus reserve can be used to make up for the
loss or increase the paid in capital after approval.
Pursuant to a resolution of the Board of Directors meeting dated 8 April 2008 and the approval of
the shareholders’ meeting dated at 29 May 2008, the Company utilized surplus reserve as at 31
December 2006, including discretionary surplus reserve of RMB 699,406,238 and statutory
surplus reserve of RMB 181,586,732 to offset the deficit of RMB 880,992,970 of the Company
after the retrospective adjustments of the first-time adoption of CAS. Meanwhile, the hareholders’
meeting resolved to approve the Board of Directors’ proposal to appropriate 10% of the net profit
RMB 97,107,200 for the year ended 31 December 2007 to the statutory surplus reserve and no
appropriation to discretionary surplus reserve for the year ended 31 December 2007. The
appropriations have been recorded in the financial statements for the year ended 31 December
2008, the year when the shareholders’ meeting approved the proposal.
According to a resolution of the Board of Directors meeting dated 9 April 2009, the Company
appropriated 10% of net profit for the year 2008 to the statutory surplus reserve with an amount of
RMB 44,903,613 and appropriate no discretionary surplus reserve.
(31) Profit distribution
In accordance with a resolution at the Board of Directors meeting dated 9 April 2009, the Board of
Directors proposed dividend of RMB 5.00 for each 10 shares of the issued shares as at 31
December 2008 which was 644,763,730 in total, with an aggregated amount of RMB 322,381,865.
The proposed dividend is yet to be approved by the annual general meeting of the shareholders,
and has been recorded as liability in this set of financial statements.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 53 -
8 Notes to the consolidated financial statements (continued)
(32) Minority Interests
Minority Interests attributing to minority interests:
30 June 2009 31 December 2008
International Enterprise Co., Ltd. 365,964,045 317,996,128
Hidoney Developments Co., Ltd. 292,771,236 254,396,902
658,735,281 572,393,030
International Enterprise Co., Ltd and Hidoney Developments Co., Ltd hold 25% and 20% equity in
CCT, respectively.
(33) Revenue and cost of sales
Jan.-Jun.2009 Jan.-Jun.2008
Revenue from main operations 690,973,171 945,887,500
Revenue from other operations 23,384,969 30,092,951
714,358,140 975,980,451
Jan-Jun.2009 Jan-Jun.2008
Cost of main operations 336,432,750 377,690,454
Cost of other operations 5,271,433 6,239,394
341,704,183 383,929,848
(a) Revenue and cost from main operations:
Jan.-Jun.2009 Jan.-Jun.2008
Revenue Cost Revenue Cost
Loading and unloading services 612,395,512 288,238,773 867,119,336 339,810,353
Transportation service 96,006,908 68,224,145 102,025,720 64,570,359
Agency and others services 2,600,919 - 3,432,702 -
Elimination (20,030,168) (20,030,168) (26,690,258) (26,690,258)
690,973,171 336,432,750 945,887,500 377,690,454
The service income from the top 5 customers with aggregate amount of RMB 447,313,484
(Jan-Jun.2008: RMB 585,027,090) accounted for 64.7% (Jan-Jun.2008: 61.8%) of the Group’s
total revenue from main operation in Jan-Jun.2009.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 54 -
8 Notes to the consolidated financial statements (continued)
(33) Revenue and cost of sales(continued)
(b) Other revenue and cost
Jan.-Jun.2009 Jan.-Jun.2008
Revenue Cost Revenue Cost
Other logistic services in port 3,493,280 808,553 7,996,030 1,224,653
Lease income 7,256,445 1,554,909 7,789,517 1,459,418
Security fee 4,760,147 - 5,955,696 -
Deferred revenue 2,475,875 2,646,250
Agency fee 2,168,896 936,041 2,328,894 1,101,974
Containers management fee 985,300 - 1,382,500 -
Sales of material 430,636 - 727,659 -
Parking lot income 377,499 708,521 473,285 843,145
Documentation fee 258,789 - 358,484 -
Others 1,178,102 1,263,409 434,636 1,610,204
23,384,969 5,271,433 30,092,951 6,239,394
(34) Tax and surcharges
Jan.-Jun.2009 Jan.-Jun.2008
Business tax 24,394,461 33,066,387
City maintenance and construction tax 263,312 282,530
Educational surcharge 38,552 38,113
Others 170,292 337,976
24,866,617 33,725,006
(35) Finance expenses – net
Jan.-Jun.2009 Jan.-Jun.2008
Interest expenses -Interests on borrowings 12,700,809 26,023,286
Less: interest income (3,319,655) (4,513,891)
Exchange gains 680,905 (6,479,585)
- Exchange gains from operating
activities
680,905 (1,219,085)
- Exchange gains from hedging
activities
- (5,260,500)
Others 476,729 35,638
10,538,788 15,065,448SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 55 -
8 Notes to the consolidated financial statements (continued)
(36) Impairment losses
Jan.-Jun.2009 Jan.-Jun.2008
Impairment losses for bad debts (651,536) -
Impairment losses on fixed asset - -
Impairment losses on long-term investment - -
(651,536) -
(37) Investment income
Jan.-Jun.2009 Jan.-Jun.2008
Income from available-for-sale financial assets - -
Share of profit of investees under equity method
of accounting (Note 8 (8(a))) 25,678,050 51,566,710
Profit/cash dividends declared by investees
under cost method of accounting 7,270,550 -
income from sales of subsidiary (1,741,108) -
31,207,492 51,566,710
(38) Non-operating income and expenses
(a) Non-operating income
Jan.-Jun.2009 Jan.-Jun.2008
Gain on disposal of intangible assets - -
Gain on disposal of fixed assets 6,702,553 429,978
Others 1,133,730 63,940
7,836,283 493,918
(b) Non-operating expenses
Jan.-Jun.2009 Jan.-Jun.2008
Loss on disposal/scrapping of fixed assets 97,859 758,148
Donation 61,000 820,800
Penalty expenses 28,850 1,800
Others 162,714 29,747
350,423 1,610,495SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 56 -
8 Notes to the consolidated financial statements (continued)
(39) Income tax expenses
Jan.-Jun.2009 Jan.-Jun.2008
Current income tax 33,061,710 41,747,937
Deferred income tax 3,181,983 3,155,229
36,243,693 44,903,166
The reconciliation from income tax calculated based on applicable tax rate and total profit
presented in the consolidated financial statements to the income tax expenses is as follows:
Jan.-Jun.2009 Jan.-Jun.2008
Profit before income tax 327,514,639 528,450,776
Income tax calculated at the applicable tax
rate of 20% (2008: 18%) 65,502,928 95,121,140
Effect of different tax rate in other tax
jurisdictions (9,524) (2,048)
Tax losses of subsidiaries for which no
deferred income tax asset as recognised 209,608 483,840
Effect of tax holidays (24,423,891) (41,417,758)
Income not subject to tax (6,241,498) (9,282,008)
Income tax of overseas participation in
profit 1,206,070
Expenses not deductible for tax purposes - -
Income tax expenses 36,243,693 44,903,166
(40) Earning per share
(a) Earnings per share - basic
Basic earning’s per share is calculated by dividing the profit attributable to shareholders of the
Company by the weighted average number of ordinary shares in issue.
Jan.-Jun.2009 Jan.-Jun.2008
Consolidated profit attributable to
shareholders of the Company 200,144,439 330,964,205
Weighted average number of ordinary
shares in issue 644,763,730 644,763,730
Basic earnings per share 0.310 0.513SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 57 -
8 Notes to the consolidated financial statements (continued)
(40) Earning per share(continued)
(b) Earnings per share - diluted
The Company had not potential dilutive outstanding equity instruments issued as at 30 June 2009
and 2008, accordingly the diluted earnings per share are the same as the basic ones.
(41) Comprehensive income
Jan.-Jun.2009 Jan.-Jun.2008
Available-for-sale financial assets
the market value of the assets
cause gains/(losses) 910,000 (4,490,000)
Hedging instrument
Gains/losses of effective hedging in
current period - （7,245,666）
Tax effects on the above-mentioned
comprehensive income (182,000) 1,296,558
Total 728,000 (10,439,108)
Comprehensive income was gains and losses non-recognized by the Company.
Impact on income tax of Comprehensive income
Jan.-Jun.2009
amount
(before tax)
Tax effects amount
(after tax)
Available-for-sale financial assets 910,000 (182,000) 728,000SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 58 -
8 Notes to the consolidated financial statements (continued)
(42) Notes to consolidated cash flow statements
(a) Reconciliation from the net profit to the cash flows from operating activities
Jan.-Jun.2009 Jan.-Jun.2008
Net profit 291,270,946 483,547,610
Add: Provisions for assets impairment (651,536) -
Depreciation of fixed assets 86,971,751 91,053,369
Amortisation of intangible assets 18,955,407 19,813,578
Amortisation of long-term prepaid
expenses 1,977,279 (786,347)
(Gains)/losses on disposal of fixed assets
and intangible assets (6,604,694) 328,180
Losses on scrapping of fixed assets - -
Finance (income)/expenses 11,625,664 26,733,837
Investment income (31,207,491) (51,566,710)
Increase in deferred tax assets 3,181,982 4,026,298
Increase in inventories 253,052 (3,068,024)
Increase in operating receivables (59,488,948) (14,389,722)
(Decrease)/increase in operating payables (22,218,477) (8,791,839)
Net cash flows from operating activities 294,064,935 546,900,230
(b) Net increase/(decrease) in cash and cash equivalents
Jan.-Jun.2009 Jan.-Jun.2008
Cash at end of year 594,205,455 796,356,248
Less: cash at beginning of year 641,475,910 781,587,534
Net (decrease)/increase in cash (47,270,455) 14,768,714SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 59 -
8 Notes to the consolidated financial statements (continued)
(42) Notes to consolidated cash flow statements
(c) Cash and cash equivalents
Jan.-Jun.2009 Jan.-Jun.2008
Cash at bank and on hand
- Cash on hand 33,900 14,372
- Cash at bank 592,725,383 795,497,040
- Other cash balances 1,446,172 844,836
Cash and cash equivalents 594,205,455 796,356,248
(d) Disposal subsidiary
On 5 Jun. 2009(“disposal day”), the Company transferred all equities of Shenzhen Chiwan
Oriental Logistics Co., Ltd. to CND (Group) Co., Ltd. The financial data of such company on the
disposal date is bellows:
Amount
Disposal price 4,917,694
Disposal of cash and cash equivalent received 4,917,694
Less: cash and cash equivalent held by Oriental Logistics (2,955,699)
Disposal of net cash received 1,961,995
Total owners' equity of Shenzhen Chiwan Oriental Logistics Co., Ltd.
Disposal day 31 December 2008
Current assets 3,599,393 5,286,403
Non-current assets 3,127,856 2,749,620
Current liabilities (68,446) (895,265)
Non-current liabilities - -
Total 6,658,803 7,140,758
Revenue、costs and expenses、Profit of Shenzhen Chiwan Oriental Logistics Co., Ltd. From 1 Jan
2009 to Disposal day is below:
Amount
Revenue 420,596
Less:costs and expenses (902,551)
Total profit (481,955)
Less: Income tax (expenses)/ income -
Net profit (481,955)SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 60 -
9 Segment information
The Company’s management team shall go through the internal report of the Group regularly to
evaluate operating results of each integral part in the Group and determine resource allocation to
them. Based on these, business segment is recognized.
The Company’s management team shall consider the Group’s operating status from the following
two aspects respectively, i.e., type of business and regions providing business services. In
business, the management shall make appraisal to business performance of operations such as
loading and unloading operation, transport operation, agency and other services. Furthermore, the
management also shall examine and check business performance of agency and other services
that it is obtained in China mainland and Hong Kong.
The transfer price between segments shall be determined based on the market price. The
expenses attributable to each segment indirectly shall be distributed among segments in the light
of income ratio.
Segment information for the six months as of 30 June 2009 and as at 30 June 2009
Load and unload
operation Transportation Agency service and others Elimination Total
Revenue 635,163,208 96,370,824 3,015,456 (20,191,348) 714,358,140
Including: revenue from
external customers 635,163,208 76,179,476 3,015,456 - 714,358,140
Inter-segment revenue - 20,191,348 - (20,191,348) -
Operating expenses 347,593,293 75,123,827 2,787,080 (20,191,348) 405,312,852
Segment profit 287,569,915 21,246,997 228,376 - 309,045,288
Less: unallocated
expenses
(20,224,001)
Add: share of profit of
associates 28,826,272 (3,148,222) 25,678,050
Add: other investment
income 5,529,442 5,529,442
Operating profit 316,396,187 21,246,997 2,609,596 320,028,779
Segment assets 4,548,380,262 225,314,065 162,312,566 (34,723,702) 4,901,283,191
Including: investment in
associates 326,893,518 -
148,008,555
474,902,073
Add: unallocated assets 282,742,381
Total assets 4,548,380,262 225,314,065 162,312,566 (34,723,702) 5,184,025,572
Segment liabilities 252,817,033 19,200,608 26,380,187 (34,723,702) 263,674,126
Add: unallocated liabilities 1,627,861,244
Total liabilities 252,817,033 19,200,608 26,380,187 (34,723,702) 1,891,535,370
Depreciation and
amortization 95,982,414 11,690,723 231,300 107,904,437
Loss on asset impairment (651,536) - - (651,536)
Capital expenditures 122,360,603 11,070,666 1,267,353 134,698,622SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 61 -
9 Segment information(continued)
Segment information for the six months as of 30 June 2008 and as at 30 June 2008
Load and unload
operation
Transportation Agency service and others Elimination Total
Revenue 895,598,498 103,697,291 3,945,316 (27,260,654) 975,980,451
Including: revenue from
external customers 895,598,498 76,436,637 3,945,316 975,980,451
Inter-segment revenue 27,260,654 (27,260,654) -
Operating expenses 408,346,997 74,733,461 2,862,104 (27,260,654) 458,681,908
Segment profit 487,251,501 28,963,830 1,083,212 - 517,298,543
Less: unallocated
expenses (39,297,900)
Add: share of profit of
associates 55,150,736 - （3,584,026）- - 51,566,710
Add: other investment
income - - - - -
Operating profit 542,402,237 28,963,830 （2,500,814） - 529,567,353
Segment assets 4,933,039,541 252,024,127 187,897,738 (72,557,303) 5,300,404,103
Including: investment
in associates 310,890,382 -
156,504,502
- - 467,394,884
Add: unallocated assets 179,966,034
Total assets 4,933,039,541 252,024,127 187,897,738 (72,557,303) 5,480,370,137
Segment liabilities 299,476,736 29,926,771 40,440,666 (72,557,303) 297,286,870
Add: unallocated
liabilities 2,002,469,773
Total liabilities 299,476,736 29,926,771 40,440,666 (72,557,303) 2,299,756,643
Depreciation and
amortization 99,300,253 10,710,186 70,161 110,080,600
Loss on asset
impairment - - - -
Capital expenditures 123,563,200 31,622,419 1,477,201 156,662,820SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 62 -
9 Segment information(continued)
For the six months as of 30 June 2009, total revenue of foreign transaction obtained by the Group
from China mainland, other areas and countries, and the Group’s total non-current assets except
for financial assets and deferred income tax assets in China mainland, other areas and countries
as at 30 June 2009 are as follows:
2009 2008
For the six months
ended 30 June 2009
30 June 2009 For the six months
ended 30 June 2008
30 June 2008
Revenue Non-current assets Revenue Non-current assets
Mainland PRC 712,912,982
4,007,713,349 974,543,367
4,042,259,073
Hong Kong 1,445,158
326,915,675 1,437,084
310,781,800
Total 714,358,140 4,334,629,024 975,980,451 4,353,040,873
Total operating revenue of labor from the top five clients come down loading and unloading
business is RMB 447,313,484, accounting for 62.6% of total revenue of the Group.
10 Related parties and related party transactions
(1) The parent company and subsidiaries
The general information of the subsidiaries is set out in Note 7.
(a) General information of the parent company
Place of registration Nature of business
Nanshan Group Shenzhen
Land development, port service and transportation,
industry and commerce, tour, real estate and others
(b) Registered capital and changes in registered capital of the parent company
31 December 2008
Current year
additions
Current year
decreases 30 June 2009
Nanshan Group 500,000,000 - - 500,000,000
(c) The proportion of interests and voting rights in the Company held by the parent company
30 June 2009 31 December 2008
% interest held % voting rights % interest held % voting rights
Nanshan Group 57.51% 57.51% 57.51% 57.51%SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 63 -
10 Related parties and related party transactions(continued)
(2) Nature of related parties that do not control or are not controlled by the company
Name of related party Relationship with the Group
China Petroleum Supply Base Co. Ltd (“CPSB”) a fellow subsidiary of the Company
Shenzhen Chixiao Engineering Construction Co. Ltd
(“Chixiao Engineering”)
a fellow subsidiary of the Company
Shenzhen Haiqin Engineering Supervision Co. Ltd
(“Haiqin Engineering”)
a subsidiary of the shareholder of the
parent company
SMW, SMP and SMT (“Mawan companies”) Indirect associates of the Company, and
common key management personnel
with the Company
Shenzhen Cyber-harbour Network Co., Ltd Associate of the Company
MPIL Indirect associate of the Company
Shenzhen Nantian Oilmills Company (“Nantian Oilmills”) Common key management personnel
with the Company
Shenzhen Southsea Grains Industries Limited
(“Southsea Grains”)
Common key management personnel
with the Company
(3) Related party transactions – Between the Group and related parties
(a) Expenses for operating lease
The related parties’ pricing policies on lease of container yards and office land from Nanshan
Group and CPSB are based on negotiation.
Jan.-Jun.2009 Jan.-Jun.2008
Nanshan Group
22,930,453 18,384,284
CPSB
843,347 758,737
23,773,800 19,143,021
For the six months ended 30 June 2009, the operating lease payment to related parties accounted
for 65.97%of total operating lease payment (Jan.-Jun. 2008: 54.58%).SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 64 -
10 Related parties and related party transactions(continued)
(3) Related party transactions – Between the Group and related parties(continued)
(b) Services received
The related parties’ pricing policies on services received are based on negotiation.
Jan.-Jun.2009 Jan.-Jun.2008
Amount % of total services Amount % of total services
Nantian Oilmills - Load and unload service 1,732,222 7.72% - -
Shenzhen Cyber-harbour Network Co., Ltd -
network service 2,150,750 100% 2,936,218 100%
3,882,972 2,936,218
(c) Services provided
Jan.-Jun.2009 Jan.-Jun.2008
Amount % of total services Amount % of total services
Mawan companies – road transportation 6,530,811 14.65% 8,877,003 13.66%
Nantian Oilmills - load and unload service 6,814,345 1.18% 5,717,918 0.64%
Southsea Grains - load and unload service 917,761 0.15% 1,456,454 0.16%
Southsea Grains - leasing 1,980,355 27.29% 1,828,020 23.47%
16,243,272 17,879,395
(d) Loan
Interest rates of loans from Nanshan Group are determined based on the market interest rate.
Jan.-Jun.2009 Jan.-Jun.2008
Nanshan Group
- long-term loans obtained from
- -
- short-term loans repaid
- -
- long-term borrowing repaid
- (9,364,000)
In March 2008, the Company repaid the long-term loan of HKD 10,000,000 obtained from
Nanshan Group in 2007. Related interest expense paid for the six months ended 30 June 2008
was HKD 5,258,466 with annual interest rate of 4.5%.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 65 -
10 Related parties and related party transactions(continued)
(3) Related party transactions – Between the Group and related parties(continued)
(e) Transfer equities
On 5 Jun. 2009, the Company transferred all equities of Shenzhen Chiwan Oriental Logistics Co.,
Ltd. to CND (Group) Co., Ltd. The financial data refer to Notes8(42).(d).
(4) Receivables from and payables to related parties – for the Group
(a) Accounts receivable
30 June 2009 31 December 2008
Southsea Grains 1,138,810 1,141,401
Mawan companies 944,021 1,046,835
Nantian Oilmills 1,989,290 972,527
4,072,121 3,160,763
As at 30 June 2009, the Group’s accounts receivable from related parties accounted for 2.0% of
total accounts receivable balances (2008: 2.2%).
(b) Long-term receivables
30 June 2009 31 December 2008
MPIL(Note8(7)) 184,039,141 184,039,141
As at 30 June 2009, the Group’s long-term receivables from related parties accounted for 100% of
total long-term receivable balances (2008: 100%).
(c) Accounts payable
30 June 2009 31 December 2008
Nanshan Group 4,431,038 4,466,812
Haiqin Engineering 228,407 986,807
Nantian Oilmills 604,639 -
5,264,084 5,453,619
As at 30 June 2009, the Group’s aaccounts payable to related parties accounted for 10.4% of total
accounts payable balances (2008: 9.3%).SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 66 -
10 Related parties and related party transactions(continued)
(4) Receivables from and payables to related parties – for the Group(continued)
(d) Other payables
30 June 2009 31 December 2008
Mawan companies (a) 622,441 1,690,316
Nanshan Group 351 7,215
622,792 1,697,531
As at 30 June 2009, the Group’s payable to related parties accounted for 0.6% of total other
payables balances (2008: 1.6%).
(a) The Company cooperates with Mawan companies in marketing promotion activities. Some common
expenses incurred in the cooperation are allocated to both parties based on certain reasonable
criteria. For those payments and receipts made on behalf, the Company and Mawan companies
recorded the amounts in other receivables or other payables.
(5) Related party transactions – between the Company and subsidiaries
(a) Rental paid to subsidiaries
The price of operating lease of machinery and equipments from subsidiaries are determined by
negotiation.
Jan.-Jun.2009 Jan.-Jun.2008
CCT 322,800 520,000
(b) Services received from subsidiaries
The pricing policies on services received from subsidiaries are based on negotiation.
Jan.-Jun.2009 Jan.-Jun.2008
Shenzhen Chiwan Transportation Company Limited 1,080,385 2,229,291SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 67 -
10 Related parties and related party transactions(continued)
(5) Related party transactions – between the Company and subsidiaries(continued)
(c) Guarantee provided
Jan.-Jun.2009 Jan.-Jun.2008
Chiwan Wharf Holding (H.K.) Limited 202,400,000 -
CCT 38,720,000 -
241,120,000 -
(6) Amounts due to/from subsidiaries – the Company
(i) Other Receivables
30 June 2009 31 December 2008
Short-term loans to subsidiaries (a)
Shenzhen Chiwan Shipping and
Transportation Company Limited 47,408,776 47,408,776
Shenzhen Chiwan Harbour Container
Company Limited 25,000,000 40,000,000
Shenzhen Chiwan Transportation
Company Limited 7,000,000 10,000,000
Shenzhen Chiwan Trains-Grains
Terminal Company Limited - 5,000,000
Shenzhen Chiwan International Freight
Agency Company Limited 1,060,000 1,060,000
Shenzhen Chiwan Terminal Company
Limited 45,000,000 -
125,468,776 103,468,776
Others
Chiwan Wharf Holdings (H.K.) Limited 12,671,360 12,563,868
Shenzhen Chiwan Shipping and
Transportation Company Limited - 8,238,396
Shenzhen Chiwan Terminal Company
Limited - 8,000,000
Shenzhen Chiwan Trains-Grains
Terminal Company Limited - -
12,671,360 28,802,264
138,140,136 132,271,040SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 68 -
10 Related parties and related party transactions(continued)
(6) Amounts due to/from subsidiaries – the Company(continued)
(a) The interest rates of short loans to subsidiaries are set based on market interest rate.
(ii) Long-term receivables
30 June 2009 31 December 2008
Dongguan Chiwan Wharf Company
Limited 135,000,000 135,000,000
Shenzhen Chiwan Transportation
Company Limited 18,223,794 18,223,794
Chiwan Wharf Holdings (H.K.) Limited
11,004,285 11,004,285
Shenzhen Chiwan Harbour Container
Company
Limited - -
Shenzhen Chiwan Shipping and
Transportation Company Limited - -
164,228,079 164,228,079
The above long-term receivables are the amounts excess contribution made by the Company over
the registered capital of respective subsidiaries.
11 Events after the balance sheet date
As approved by the 6th Board of Directors at the 4th Session for 2009, on 27 Aug. 2009, the
Company gave consent to transfer the assets related to container overland transportation
business of Shenzhen Chiwan Transportation Company Limited (the subsidiary of the Company)
to Shenzhen Chiwan Oriental Logistics Co., Ltd. (the affiliated company of the Company) at the
transfer pricing of RMB 21.48 million, namely the assets evaluated value on 30 June 2009. The
said assets transfer has little influence on financial data of the Group.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 69 -
12 Net profit after extraordinary gains and losses
Jan.-Jun.2009 Jan.-Jun.2008
Net profit 291,270,946
483,547,610
Plus: Net losses/(gains) on disposal of
non-current (6,604,694)
328,170
Less: Other non-operating expenses-net (881,166)
788,407
Tax effects on extraordinary gain and
losses 1,390,265
(155,203)
Net profit before extraordinary gain to losses 285,175,351
484,508,984
- Attributable to Shareholder of the company 194,446,830 331,758,107
- Minority interests 90,728,521 152,750,877
The basis of preparation of net profit before extraordinary gains and losses reconciliation.
According to the Interpretation Bulletin on Information Disclosure by Public Companies No [2008]
1 – Extraordinary gains and losses, extraordinary gain and losses are the gain and losses resulted
from the transactions/events which are not incurred by the operation of the entity, or, though
incurred by the operation, the nature, amounts or the frequency of such transactions/events will
lead to a misleading presentation of the normal performance and profitability of the operation of
the entity.
13 Notes to the Company’s financial statements
(1) Accounts receivable and other receivables
(a) Accounts receivable
31 December 2008 30 June 2009
Accounts receivable 11,990,287 15,028,435
Current year
additions
Current year
reversals
Less: provision for bad debts (651,536) - (651,536) -
11,338,751 15,028,435SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 70 -
13 Notes to the Company’s financial statements(continued)
(1) Accounts receivable and other receivables (continued)
(a) Accounts receivables (continued)
The ageing of accounts receivable and related provisions for bad debts are analysed below:
30 June 2009 31 December 2008
Amount
% of total
balance
Provision for
bad debts Amount
% of total
balance
Provision for
bad debts
Within 1 year 15,028,435 100% - 11,793,715 98.4% (454,964)
1 to 2 years - - - 196,572 1.6% (196,572)
Over 3 years - - - - - -
15,028,435 100% - 11,990,287 100% (651,536)
Accounts receivable are analysed by customer’s categories as follows:
30 June 2009 31 December 2008
Amount
% of total
balance
Provision for
bad debts proportion Amount
% of total
balance
Provision for
bad debts proportion
Receivables that are
individually significant
11,325,645 75.4% - - 6,792,486 56.6% - -
Others 3,702,790 24.6% - - 5,197,801 43.4% (651,536) 12.5%
15,028,435 100% - - 11,990,287 100% (651,536) 5.4%
The managements categorized the top five of accounts receivable in “receivables that are
individually significant”. They are all aged within one year and the management considered no
provision for bad debts is needed.
(b) Other receivables
31 December 2008 30 June 2009
Loans to subsidiaries 103,468,776 125,468,776
Others 31,103,000 17,267,774
134,571,776 142,736,550
Current year
additions
Current year
reversals
Less: provision for bad debts (1,613,795) - - (1,613,795)
132,957,981 141,122,755SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 71 -
13 Notes to the Company’s financial statements(continued)
(1) Accounts receivable and other receivables (continued)
(b) Other receivables(continued)
The ageing of receivables and related provisions for bad debts are analysed below:
30 June 2009 31 December 2008
Amount
% of total
balance
Provision for
bad debts Amount
% of total
balance
Provision for
bad debts
Within 1 year 128,119,577 89.8% - 132,808,125 98.7% -
1 to 2 years 966,858 0.7% - 76,063 0.1% (7,606)
2 to 3 years 76,063 0.1% (7,606) 439,351 0.3% (437,951)
Over 3 year 13,574,052 9.4% (1,606,189) 1,248,237 0.9% (1,168,238)
142,736,550 100% (1,613,795) 134,571,776 100% (1,613,795)
Other receivables as analysed by customer’s categories as follows:
30 June 2009 31 December 2008
Amount
% of total
balance
Provision for
bad debts proportion Amount
% of total
balance
Provision for
bad debts proportion
Receivables that
are individually
significant
138,140,136 96.8% - - 126,211,040 93.8% - -
Others 4,596,414 3.2% (1,613,795) 35.1% 8,360,736 6.2% (1,613,795) 19.3%
142,736,550 100% (1,613,795) 1.1% 134,571,776 100% (1,613,795) 1.2%
The management categorized the top five of other receivables in “receivables that are individually
significant”.
The Company did not have any balances which were due from parties having 5% or above
shareholdings in the Company.
As at 30 June 2009, the aggregate amount of the Company’s five largest other receivables
balances was RMB 138,140,136 (31 December 2008: RMB 126,211,040), being 96.8% (31
December 2008: 93.8%) of the total other receivables, all aged within one year.SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 72 -
13 Notes to the Company’s financial statements(continued)
(2) Long-term equity investments
30 June 2009 31 December 2008
Subsidiaries (a) 680,088,199 685,088,199
Associates (b) 148,008,555 154,906,777
Other long-term equity investments (Note8(8)) 17,037,500 17,037,500
845,134,254 857,032,476
Less: provision for impairment loss (Note8(8)) (3,128,300) (3,128,300)
842,005,954 853,904,176
As at 30 June 2009, the long-term equity investments of the Company are not subject to restriction
on conversion into cash or restriction on remittance of investment income.
(a) Subsidiary companies
Initial investment
costs
Subsequent
additions 31 December 2008
Current year
additions 30 June 2009
Shenzhen Chiwan Terminal Company
Limited 47,500,000 - 47,500,000 47,500,000
Shenzhen Chiwan International Freight
Agency Company Limited 5,000,000 - 5,000,000 5,000,000
Shenzhen Chiwan Harbour Container
Company Limited 15,000,000 55,920,000 70,920,000 70,920,000
Shenzhen Chiwan Transportation
Company Limited 7,000,000 - 7,000,000 7,000,000
Chiwan Wharf Holdings (H.K.) Limited 1,070,000 - 1,070,000 1,070,000
Shenzhen Chiwan Shipping and
Transportation Company Limited 6,000,000 - 6,000,000 6,000,000
Shenzhen Chiwan Trains-Grains
Terminal Company Limited 33,750,000 - 33,750,000 33,750,000
Chiwan Container Terminal Company
Limited 65,201,611 355,821,588 421,023,199 421,023,199
Shenzhen Chiwan Oriental Logistics
Company Limited 5,000,000 - 5,000,000 (5,000,000) -
Dongguan Chiwan Wharf Company
Limited 15,000,000 62,585,000 65,325,000 65,325,000
Dongguan Chiwan Terminal Company
Limited 22,500,000 - 22,500,000 22,500,000
223,021,611 474,326,588 685,088,199 (5,000,000) 680,088,199SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 73 -
13 Notes to the Company’s financial statements(continued)
(2) Long-term equity investments(continued)
(b) Associates
(3) Operating income and operating cost
Jan.-Jun.2009 Jan.-Jun.2008
Revenue from main operations 55,333,268 99,331,289
Revenue from other operations 4,065,659 4,671,155
59,398,927 104,002,444
Jan.-Jun.2009 Jan.-Jun.2008
Cost of main operations 59,376,451 67,933,004
Cost of other operations 381,723 696,366
59,758,174 68,629,370
(a) Revenue and cost from main operations
Jan.-Jun.2009 Jan.-Jun.2008
revenue cost revenue cost
load and unload operation 55,333,268 59,376,451 99,331,289 67,933,004
Revenue derived from top 5 customers was RMB 20,185,517 in total, which represented 36% of
the main operation revenue.
Initial investment
costs
31 December 2008
Current year
addition
Share of
profit of
associates
Profit/Cash
dividends declared
by associates 30 June 2009
Shenzhen Cyber-harbour
Network Co., Ltd
1,875,000 13,374,530 -- 1,485,854 （3,750,000） 11,110,384
China Merchants
Maritime & Logistics
(Shenzhen) Ltd.
(Note8(9))
160,000,000 141,532,247 - (4,634,076) - 136,898,171
161,875,000 154,906,777 - (3,148,222) （3,750,000） 148,008,555SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
- 74 -
13 Notes to the Company’s financial statements(continued)
(3) Operating income and operating cost(continued)
(b) Other revenue and cost
Jan.-Jun.2009 Jan.-Jun.2008
revenue cost revenue cost
Lease income 1,993,822 381,723 1,854,895 359,528
Containers management fee 985,300 - 1,382,500 -
Documentation fee 258,789 - 365,444 -
Sales of materials 223,097 - 251,827 -
Other logistic services in port 141,435 - 87,285 -
Others 463,216 - 729,204 336,838
4,065,659 381,723 4,671,155 696,366
(4) Investment income
Jan.-Jun.2009 Jan.-Jun.2008
Income from available-for-sale financial assets
Shares of profit or loss of investees under equity
method accounting (3,148,222) (3,584,026)
Profit/cash dividends declared by investees
under cost method accounting 10,151,554 31,462,393
Interest income for short-term loans to
subsidiaries 2,522,987 4,823,829
9,526,319 32,702,196
14 discontinuing operation
On 14 May 2009, an Agreement on Equity Transfer was signed between the Company and CND
(Group) Co., Ltd., in which the Company transferred all equities of Shenzhen Chiwan Oriental
Logistics Co., Ltd. to CND (Group) Co., Ltd.
The said transfer has been completed on 5 Jun. 2009. Shenzhen Chiwan Oriental Logistics Co.,
Ltd. shall no longer be included in the consolidation scope of the Company. The financial data of
such company on the disposal date has little effect on the Group.
（For financial information of the part that businesses is terminated, please refer to Note8
(42) .(d)）
